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India-Pakistan
Indian inflation approaches 12%
2008-07-15
Wholesale prices in India grew by 11.89% in the year to the end of June, the fastest rate since the measure began in 1995. Inflation has tripled over the last six months, driven by the soaring cost of food and fuel.

Figures also showed that the output of India's factories grew by its slowest rate in six years. Industrial output rose 3.8% in May, compared to the same month in 2007, a sharp drop on the April's 6.2% growth. "The industrial output numbers ... are a reflection of manufacturers anticipating a slowdown in consumer spending as high inflation bites into incomes and some scale-back of fresh production plans," said economist Shuchita Mehta, from Standard Chartered Bank.

The Reserve Bank of India has been increasing interest rates to try and dampen inflation. Last month, it increased its main lending rate twice in two weeks to 8.5%.
Posted by:Steve White

#3  I guess this is bad. As the economies of China and India mature they will produce a burgeoning middle class that will Spend. Millions, hundreds of millions of consumers that will Buy goods of all types. If you can't figure this as a positive thing, go back to night school and take some more econ. classes. There is a great deal of irrational fear and jealousy directed at China and India right now because of their economic growth. There is also a good bit of rational fear, but let's face it; we let them take it away from us, so who's really to blame?
Posted by: bigjim-ky   2008-07-15 11:13  

#2  Muslims and everybody else?

I do not believe the Mohammedans are waiting for a recession to kick things off.
Posted by: Excalibur   2008-07-15 09:36  

#1  And yesterday there was a story on Spain leading Europe into recession. I've been saying for a while that the high oil prices were not going to affect only the US economy. Decelleration of the Indian (and presumably Chinese) economy and recession of the Spanish (and presumably European) economy should reduce oil demand, and thus price (and also improve Dollar-Euro exchange rate and thus reduce dollar price for oil.)
These changes will also have a big effect on world trade, which will tend to pull down the US economy as well (though probably not as far or fast as others). Key question is can we avoid a 1920's-1930's style global depression? And if not, would we need another World War to get out of it? Between who? Muslims and everybody else? (Not calling for such, just wondering.)
Posted by: Menhaden S   2008-07-15 08:26  

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