Yes, Manmohan Singh is a good economist but actually it is on that front that this government must be attacked. Rather than gradually raise oil prices so that the effect of inflation is kept under check these bozos got into such a false sense of security that they thought the party will never end. Hence we get this one really horrible year and if the true price of oil gets reflected petrol would be selling at about 75 rupees a litre in India which would take inflation to over 20 percent possibly 22 or 23 percent. Now let us even say that why blame poor Singh for oil prices. Japan produces almost no oil. They are almost hundred percent dependent on oil imports. India at least produces about 30 percent of its oil. But Japan imports almost all its oil. Yet inflation this year in Japan is about 1 percent. It is about 3 percent in other countries in Europe which also import quite a lot of oil. So, certainly our two "esteemed" economists Singh and Chidambaram must take some blame on this count.
RE:Why Japan has only 1% inflation and India has 11%
by All Right on Jul 23, 2008 11:54 AM Permalink
Who says Japan has only 1% inflation? It is around 4%.
Yes Europe has around 4% too.
Both Japan and especially Europe offset spiralling price of oil by appreciation of their respective currencies. Europe has build oil pipelines from Central Asia. The consumption of oil in OECD countries have plunged.
RE:Why Japan has only 1% inflation and India has 11%
by tinku kumar prasad on Jul 23, 2008 11:58 AM Permalink
Latest Data says this thing boss. Check the data in net
RE:Why Japan has only 1% inflation and India has 11%
by ankur ----- saxena on Jul 23, 2008 11:43 AM Permalink
Cant agree more.... The left parties (though they show they are concerned abt Inflation) never realy did anything except for some hue and cry and demonstrations.Mr Chidambaram and Dr Singh should take actions againsts the daily increasing prices
RE:Why Japan has only 1% inflation and India has 11%
by VSR on Jul 23, 2008 12:06 PM Permalink
Thanks for the suggestions. I think, inflation is not only the effect of oil prices, even though oil did contribute significantly. Recently I was going through a report in Economist (this publication is not from India) about inflation in India. The factors attributed were: Global oil price increase - by 14%, Agriculture supply-demand mismatch - 21%, industrial sector output hit - 9%, cheap goods from smuggled into country from China - 4%, black money in circulation - 29% (wov), subsidies reduction - 6%, middle class affluence through service sector wage increase - 17%. The equation is perfect. Why only blame it oil. You can certain blame the big black money which goes pretty uncontrolled. If we can see 1 crore can be carried into parliament without a problem, which is considered to high secure zone when full parliament session is on, such crores and crores at the disposal of politicians, business men and beuarocracts, why not the affluence spending goes up and creating an artificial demand which lead to increase in inflation. I thought this is the fact, people should read this articile in Economist. I am sure Man Mohan Sigh knows this and PM and FM cannot do anything on this.
RE:Why Japan has only 1% inflation and India has 11%
by tinku kumar prasad on Jul 23, 2008 11:51 AM Permalink
Boss if the inflation rate is low then Growth Rate is alos low. japaan has only 1.9 GDP growth rate while india has 9% growth rate. So Here we have little bit high inflation sonce last six month only
