Why India's soaring food inflation is a global problem, Food prices have spiralled above 11% in India

[Kuru]

Lol @beijingwalker
Just saying, @CallSignMaverick was referring to BBC having sensational title of this article, and then changed it after people trolled BBC.

You are welcome.

 

[Hero786]

At least for common people deflation is good than inflation

 

[Han Patriot]

At least for common people deflation is good than inflation

It depends, in China, food is roughly the same price, deflation is mostly in property price, which is good. Chineze demand for goods and services is still veru high.

 

[beijingwalker]

OP should worry about deflation in his country, our inflation is caused by supply side constraints which also means there is demand for growth. Our supply constraints will sort themselves out.

As a consumer, why should I worry everything becoming cheaper? You Indians love higher price and inflation?

 

[protean]

As a consumer, why should I worry everything becoming cheaper? You Indians love higher price and inflation?

Lol. There is too much supply and not much demand, hence the deflation. That could be good temporarily but as this prolongs, the supply adjusts, causing a large scale unemployment and de growth.

 

[beijingwalker]

Lol. There is too much supply and not much demand, hence the deflation. That could be good temporarily but as this prolongs, the supply adjusts, causing a large scale unemployment and de growth.

OK, I m fine with cheap food and goods, enjoy your double digit inflation.

 

[CallSignMaverick]

India has double digit inflation yet Nominal GDP growth was the same as real gdp growth this quarter, wumaos are funny creeps .

 

[beijingwalker]

India has double digit inflation yet Nominal GDP growth was the same

Lol, even you can see the correlation.

 

[Vikramaditya-I]

As a consumer, why should I worry everything becoming cheaper?

Yes, because it shows a lack of economic growth, the deflation is usually transitory as it will drive down revenue and tax. Our annual inflation remains within 4-6% range. The prices may swing back and forth. We have never had double-digit inflation in over a decade.

 

[Han Patriot]

Lol. There is too much supply and not much demand, hence the deflation. That could be good temporarily but as this prolongs, the supply adjusts, causing a large scale unemployment and de growth.

The thing in China is for essential items like food, the supply and demand is pretty balanced. The deflation is in properties which is good actually. In India where hunger is prevalent, a slight inflation can mean life and death.

 

[Menthol]

Is it good or bad?

An increase of 11% in food prices means the GDP is bigger 11% than last year???

Should I say, congratulations?

 

[Indos]

Is it good or bad?

An increase of 11% in food prices means the GDP is bigger 11% than last year???

Should I say, congratulations?

GDP growth calculation has adjusted inflation effect, so saying inflation will inflate GDP growth is not true.

The inflation in food In India I believe is due to combination of insufficient irrigation system and current El Nino climate (less rain). Indonesia also gets El Nino effect this year, very less rain we are experiencing this year.

But yeah the inflation on food is bad idea for the poor.

 

[migflug]

Is it good or bad?

An increase of 11% in food prices means the GDP is bigger 11% than last year???

Should I say, congratulations?

No, the nominal growth doesn't matter, real growth matters. Moreover high inflations leads to currency devaluation, which makes import costlier which can further aggravate the inflation( technically export should grow too, but India is more import dependent).