Taming Inflation in India
Rac, Financial Consultant, Member
RBI's money tightening policy is one measure, inflation in India is largely due to
a) Increase in spending power of general public esp. in villages due to government rural employment schemes,
b) Vast population and lack of adequate infrastructure and economic management in bureaucracy so that hoarders/manipulators take advantage of weak system,
c) Declining value of Rupee,
d) Corrupt political and bureaucratic system in centre and states which colludes with business houses to raise prices without justification,
e) Lack of will of government to control inflation.
But don't worry inflation will start coming down from April 2012 for next two years up to next Lok Sabha elections.