Wednesday June 18, 2008

India inflation rate hits 7-year high of 8.75%

This article belongs to the India inflation watch story arc.

channelnewsasia.com :

India's inflation has hit its highest level in more than 7 years, data showed Friday [13 Jun 2008]. The widely-followed Wholesale Price Index rose to 8.75% for the week ended May 31, the highest since February 2001, driven by food, vegetables and manufactured goods. Analysts expect inflation to rise further to double digits following last week's sharp hike in fuel prices aimed at stemming huge losses at state oil firms due to surging global crude costs.

- The race is on to see which is the next country in the world that will lead us into the brave new era of global hyperinflation, following Zimbabwe's incredible lead of over a million percent per year in its CPI inflation rate. Currently Vietnam with its 25.2% inflation rate in May 2008 is one of the hot favourites alongside Venezuela with its 34.1% inflation rate, also as of May 2008. The other Asian countries are not to be left behind either, with China's inflation rate hitting an 11-year high of 8.7%, Singapore's CPI inflation rate at a 26-year high of 7.5% as of Apr 2008, and Malaysia's inflation rate set to hit a 9-year high of 5% following their recent petrol and diesel price hikes.

With this rise in the wholesale inflation index, India is jumping right into the global hyperinflation race together with the entire Asian and emerging market regions. It is a race to the bottom as there is only one conclusion, one final value for all fiat currencies throughout history and that is zero. It does not help that M3 money supply growth rates are in the double digits worldwide, and it certainly does not help either that food prices are going up in the midst of an ongoing global food crisis and crude oil prices are setting new records on a regular basis. Global hyperinflation, here we come.

See also :

1. India wholesale inflation jumps to 7.41%
2. India wholesale inflation accelerates to 13-month high of 6.68%
3. India inflation crosses 5% to hit a 10-month high
4. Gresham's Law and the Indian coin shortage

Updated :

1. India wholesale inflation rate rises to 11%, a new 13-year high

(2008-06-18 13:40:39 SGT) [Biz] Permalink

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