» 04/11/2008, 00.00
Indians face record inflation as a result of runaway food prices
The Indian government tries to keep a lid on prices without harming economic growth. Import taxes on food are scrapped and rice and pulses exports are banned, but the problem is world-wide.
Inflation choking India despite more expensive borrowing
Inflation is expected to be double-digit. Food prices are outpacing overall inflation. As economic growth cannot keep pace with rising consumer prices, the government is forced to subsidy poor households, further stoking inflation.
Beijing tightens borrowing, Chinese stock markets drop
Central bank forces banks to increase reserve ratio to 16 per cent. Their ability to extend loans to businesses is curtailed. Shanghai and Hong Kong stocks lose three per cent.
Indian Prime Minister blames West for record inflation
Inflation in India reaches record level: + 7.57 per cent. Singh criticises the international community for not acting in time to stop price hikes. Experts lay part of the blame on New Delhi though for paying little attention to the farm sector and favouring industry and services.
Economic growth slowing down as rate of inflation catches up
Agriculture is the most affected sector with hundreds of millions of people facing hardships, who might turn against the government in next year’s elections. Experts say if the growth slows down India will not be able to reduce poverty.
To fight inflation, borrowing to cost more
The Reserve Bank of India increased interest rates yesterday, the sixth time this year, in order to slow inflation, which stood at a three-year high (8.6 per cent) in September. The bank governor says rates probably will not rise further.
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