Phenomenal Rising of Prices - # of hungry ones exceed 1 bn!

[app_engine]

Of late, it looks like this is one of the topics focussed in Indian media. Many reasons are cited - inflation, salary increases, traders' usual pathukkal gimmicks, on-line trading (speculative pricing being one aspect) and why, even the use of ethanol for fuel in NA. We also read about the helplessness of political powers and often attempts to divert the attention of the public from where really the problem lies. Some politicians even went on record to state that increase in prices won't hurt if there's corresponding increase in wages as well

What are the facts? Are prices escalating? If so, what are the reasons and whether it's good or bad for the country's economy? Where it will lead to?

[joe]

It seems this is a global crisis ...Here in singapore 5 kg rice pack reached 10 dollors ,it was 5.50 dollors just 2 months ago

[ajithfederer]

One of the main drivers of inflation should be the increase of gasoline prices. It has increased from 38$ a barrel in 2004 to 102$/ barrel in 2008

Guys like PR can throw in more light into the issue

[app_engine]

Obviously, gas prices is one important reason (as not only absolute transportation costs go up but also the spiralling effect).

With demand for gas in U.S. lower than previous year, what are the reasons for gas price going up? Are the sources drying off?

[ajithfederer]

http://www.thehindubusinessline.com/...2450170800.htm

True economic costs of a war

Although this news is not directly related to the topic it does have some relevance

[app_engine]

Excellent link, ajithfederer! War results in cost increases, no doubt about it. I think historically, the third reich was a product of the huge depression that Germany faced post-WW I.

The economy today I think is more global with many corporations having worldwide operations and banks too having lot of international dependencies. This may mean price increases worldwide, even though few countries are directly involved in the wars.

[crazy]

one of the reason for high food price is chinese people eating meat and driving car naan sollala innikku kaalaiyil oru news channel sollittu irunthaanga

[ajithfederer]

Nandri

Excellent link, ajithfederer! .

[kannannn]

http://www.thehindubusinessline.com/2008/04/24/stories/2008042450170800.htm

True economic costs of a war

Although this news is not directly related to the topic it does have some relevance

I think the next president has quite a nice surprise in wait. Talk about change - from euphoria to panic

A main reason for increasing food prices is the large scale conversion of food producing farm lands to bio-fuel producing lands. Global Research has a nice article about it:
http://globalresearch.ca/index.php?context=va&aid=6407

[dev]

one of the reason for high food price is chinese people eating meat and driving car naan sollala innikku kaalaiyil oru news channel sollittu irunthaanga

Nalla joke!!!... Developed countriesla wastage-a kuraichaale paadhi prechnai solve aagidum...