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India Inflation Soars to 10%

Economics / India Mar 15, 2010 - 10:52 AM GMT

By: Nadeem_Walayat

Economics

The Indian inflation rate for February virtually hit the 10% double digit level by coming in at 9.89%, significantly above market expectations and the RBI's 8.5% target as another example of the worldwide manifestation of the Inflation Mega-trend which has already seen UK inflation double from 1.9% to 3.5% in a little over 2 months.


The reaction to the above trend inflation will be for the Indian central bank to increase interest rates at their next rate setting meeting in an attempt to prevent a wage price spiral from taking hold. The specific inflationary risks to India are covered in the Inflation Mega-trend Ebook Page 58.

Only last week, China's inflation rate jumped far higher than academic economist expectations to stand at 2.7% for February. This is just another small step in the manifestation of Inflation Mega-Trend which the ebook covers at length, which also includes a section on China eventually exporting their inflation abroad (Inflation Mega-Trend Ebook Page 55). An overheating chinese economy pumped up on stimulus steroids that is not allowing its currency to appreciate was expected to experience a surge in inflation sooner rather than later.

The full implications of the unfolding Inflation Mega-Trend including forecasts trends for major markets for many years are contained within the NEW Inflation Mega-trend ebook that I am making available for FREE, which includes analysis and precise forecasts for:

  • Interest Rates
  • Economy
  • Inflation
  • Gold & Silver
  • Emerging Markets
  • Stock Markets
  • Stock Market Sectors and Stocks, including ETF's
  • Natural Gas
  • Agricultural Commodities
  • House Prices
  • Currencies
  • Crude Oil

The 109 page ebook is being made available for FREE, the only requirement for which is a valid email address.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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