Inflation cause of worry: Experts expect it to cool down by the end of 2011

by khalid on 26/09/2011 · 1 comment

The price of each product seems to be cutting your pockets deep enough giving all sorts of troubles whatsoever.Inflation which is a great concern for our economy today is spreading its wings further giving no respite in any manner.

Prices of all goods and agricultural products are on its peak and keep on rising each day. So wondering when it would be an end to the ever rising food prices or other necessities?

Well if we take the views of experts and the current market as well as economic scenario it will be early 2012 when we could expect the inflation to stabilize a bit giving some respite. It is expected that inflation rate would come to the comfort level of 5-6% but only by early months of 2012. As per the government as well as the RBI the expectations are that by the mid of 4th fiscal year the inflation rates should start cooling off. However from RBI’s point of view if we would like the inflation to be within the acceptable range we would have to wait till March or end of this fiscal year. Inflation soared to its 13 month highs of 9.78% last month. In order to curb the inflation and drain out the excess demand RBI has already taken steps of reducing key policy rates for 12 times since March 2010.

Bell the Bull says: With the current level of inflation its imperative for continuing with the anti inflammatory stance as well as the tight monetary policy adopted.

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