The Indian economy looks better than almost any other, according to some positive thinking analysts. If you consider prices, consumer price inflation in the US is at 8.5 percent, a 40-year high. In the euro area, it is 7.5 percent. These are economies used to inflation averaging less than 2 percent. Here in India we may groan over rising petrol and diesel costs and some spectacular price tags on individual food items. Naturally, criticism of the RBI has grown for not having placed greater emphasis much earlier on controlling inflation, which is now well above the target range. Still, India’s consumer price inflation is moderate at fractionally under 7 percent. Compared with the Brics economies, Brazilian inflation is in the double-digits at 11.3 percent, as is Russia’s at 16.7 percent. Only China has the inflation beast virtually slain, breathing slowly at just 1.5 per cent. (All numbers are as compiled by The Economist)
Read more