Rising Inflation..

Rising Inflation
Introduction- We all know that the value of particular unit of money decreases with time and the business term for this incident is called ‘inflation. If you are into the business field and love investing money then you ought to be aware of this thing because both the global share market and worldwide market economy is heavily dependant upon inflation. If you are into investing then always invest at a rate will beat the rate of inflation in future. The increasing prices of various commonly used commodities and a total increase in the supply of currency determines the fact that there is inflation in the market. Sometime the government of a particular country prints more money to for meeting the demands of the world market economy. Thus you can have an overall idea about inflation.

World market- The rate of inflation has raced to a height of 11.89% in June 2008. The prices of our everyday commodities are increasing everyday. Various food products rose to 0.3.5%, vegetables up to 3.7% and the chemical products rose to a level of 1.3 percent. Now we need to understand the problem that inflation nowadays has become a global phenomenon, it is no longer a problem restricted to any particular country. Make no mistake guys, inflation is a global problem. No country can single handedly eradicate this problem. But the first world countries like America and Britain etc will be in an advantageous position as they rule the world market.

The ministry officials of various countries and according to the various research reports of this world, the rate of inflation could end up touching 13% before making a sluggish tumble. According to the experts, the double-digit inflation will be staying for another some months. And no wonder the common people will be the worst sufferer for this kind of a thing and it has been happening all over the world whenever there is a case of inflation in the world market economy. The prices of petrol, crude oil and commodities like steel and iron is expected to rise and it will be staying around 11.5% till September/October 2008. You will be amazed to now that various steel products contribute almost 21.5% of the total rate of inflation.

Inflation in India- India, one of the fastest developing third world countries, too is facing the problem of inflation. Various investing companies of this country are also worried about the fact that the rate of inflation in a country like India is so high that it is getting hard to forecast anything about the future of Indian market economy. P. Chidambaram, the finance Minister of our country is showing his concern over this issue. The Central Bank has raised its lending rate to 76 points and also increased the requirement of the banks’ reserve. Over the years, America has been able to remain in a good position whenever there was a case of inflation in the world market. But now the things seem to have changed a bit. As we know that developing countries like India are nowadays producing the half of the all American imports, and inflation are also coming to these countries. So the currency of these developing nations is also rising against dollars. US trade deficits and such other problems are also weakening the appeal of dollars. And according to many business analysts, the value of dollar could fall much further and thus there will be an equal impact of inflation all around the world.

How to take action against inflation- In this high time every country has started thinking about how to control the rate of inflation. The big problem seems to be the lack of the constant supply of money. So every country should make proper strategies and the more you can anticipate the more you will gain in spite of the problem of inflation. Remember that excess money supply can also inflate the cost of various non-tradables, so do your business accordingly. But India and China are two countries that are developing in such a fast rate that they can reduce of the problem of inflation by the rate of growth. And another thing is the reserved resources that these countries have. If these things can be looked after then it will not be a big problem for India to overcome the problem of inflation.