global recession and inflation

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lambodar moharana

lambodar moharana (Querist)
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11 November 2008 dear sir,
plz tell me about
how global recession affect the inflation in india?

thanking you

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 THere is no direct co-relation between global recession and inflation in India in my opinion.

lambodar moharana

lambodar moharana (Querist)
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12 November 2008 plz tell me how inflation increases over 11% and decrease for 3-4 week and now it increases

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 Inflation increases on account of any of the following:

1)Supply less than demand
2)Puschasing power of currency falls
3)Financing cost is high
4)Policies of government in economic development not keeping pace.
5)Money supply increases more than the production.

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