Mecklai graph of the day: Inflation a problem for all

As seen in the below graph barring India, all the major economies are witnessing a flat growth in CPI numbers or its plunging down suggesting an overall slowdown in the global economy. Further a reducing inflation also suggests that the overall global consumer spending is slowing down indicating that people prefer to save rather than consume in uncertain times. Whereas inflation for the developing economies such as China and India is comparatively much higher to the developed nations who are struggling to ramp up the growth in their respective economies, by infusing doles and doles of stimulus.

India WPI which printed higher at 7.55 than the market expectation of 7.5 suggests that we are still reeling under intense inflationary pressures and CPI numbers which is a better gauge of inflation is likely to release above 10% for the second consecutive month. The main culprit for our high inflation are supply side factors and our increasing dependence on imports mainly oil and until and unless we don’t correct this fundamental problem our inflation would consistently surge and remain elevated compared to other major economies.

The below graph shows the inflation data (CPI) for various economies.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.