Friday, 8 April 2011

"Rise In Food Prices"

food inflation which cross the double digit last week ,wholsale price index which is based in food index was diclining,the prices of milk egg and meat remamin firm.
the Average family can afford to move from coarse grains to cereals ,milk meat egg and so on . The price rise in these protein remain high the rise in fuel prise hardned the food inflation.Food inflation always remain high , whether it is on Ac of an unexpcted rise in food prices or due to surge in the prices of non food products or combination of several factors.
The rise in food prices is especially impact on the poor than others .Indian rural population spent about 67% of house hold expenditure on food.
Globalization is also playing a vital role in the rise of prices.The purchasing power parity of developing country is very low .
By stepping into  the developed phase, the purchasing power parity becomes smaller.
There is a strong connection between inclusion and inflation,if the higher savings of rural India enters the financial system this ideal money adds the liquidity of the market ,this makes our country financial literate and stoke the inflation .
Moneitisation  of the economy contribute the overall prices .Indian economy is achieving high growth from the past several years ,this will lead to high inflation .
Stable inflation in the coming years " What we needed in some respect "It is good.
This shows our economy is globalise and wider in its horizon .

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