Sunday March 22, 2009

India inflation rate slows to 0.44% in Mar 2009, lowest on record

This article belongs to the India inflation watch story arc.

bloomberg.com :

India's inflation rate slowed to a two-decade low, which is also the lowest inflation rate on record. Wholesale prices rose 0.44% in the week to 7 March 2009 from a year earlier after gaining 2.43% the previous week. The global recession has caused a decline in the cost of energy and commodities, slowing inflation across the Asia-Pacific region.

India has four separate measures to gauge consumer prices and they haven't moved in tandem with the wholesale price trend. Food prices have about 70% weight in India'a consumer price indices. Inflation as measured by the consumer prices paid by industrial workers quickened to 10.45% in Jan 2009, the highest since Dec 1998. The consumer-price index for farm workers increased 11.62% in January from a year earlier.

- Sure, we all know that the ongoing global economic crash has led to a fall in demand worldwide, hence leading to a fall in the rate of inflation in many countries, starting with crude oil prices which have fallen off the record high reached in Jul 2008. However, there is one sector where prices have not fallen much, if at all. And that is food. Check out the part above where they mention that for the consumer price indices that India is compiling, food prices make up 70% of them and those indices have been going *up*, not down. And they are going up at a pretty good clip of 10-11% too.

Everywhere, petrol/gasoline prices have fallen, housing prices have fallen, car prices have fallen. Food prices have not. In a thread titled "Global Food 2009" over at the peakoil.com forums, the peakoiler community has taken note of this trend. Global food inventory levels have not improved at all, and with all the bizzare droughts, floods and other effects of climate change, the situation does not look very good. But if it is investment recommendations that you are looking for, I have talked about it before. You could go load up on the agricultural ETF's MOO and DBA. I am.

See also :

1. India inflation crosses 5% to hit a 10-month high
2. India inflation rate hits 7-year high of 8.75%
3. India wholesale inflation rate rises to 11%, a new 13-year high
4. India wholesale inflation rate hits new 13-year high of 12.63% in Aug 2008

(2009-03-22 10:52:37 SGT) [Biz] Permalink

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out