How can one counter high inflation which is there at the moment?

I think banks will raise the policy rates and we should be expecting 50 bps of interest rate hikes before the end of 2010-11 which ends 31 March, unexpected reversal in the seasonal pattern of food prices means the wholesale price inflation is likely to rise. The inflation, mainly the food inflation, has been at uncomfortably high levels for the last few weeks. Soaring onion and other vegetables' prices led to the sharp rise in food inflation.

Our Home Minister , Sri.P.Chidambaram said on 5-1-'11 that all the tools to control inflation & all the factors contributing to high prices with special reference to controlling Food Inflation particularly in a poor Country requiring Price Stability are neither at our hand nor grasped well equally by all concerned including the Government of India . In other words , the matter and modes of Inflation acquired from the latest years to present days ever wider operational areas . So far its boundaries and contents can hardly be deemed rigourously defined.

As a taught discipline , it is included in many Syllabi though what is covered is not always the same. In professional quarters and among Governors , it lacks oneness in much the same way . Some Economics professionals treat it merely as a term inappropriately defined and variously understood . Others on the contrary, do not include it in social methods of Governance . Some others tend to deny that inflation exists as an independent discipline preferring to include it with bargaining practices of majority people at the social markets and societal  talk-abouts. There are even those  who tend to endow Inflation with an enormously wide sense claiming it to be a key perpetrator of slipping formulations and adopted spirit which are not perfectly correct suiting to the care-free and go-happy lucky masses settled with their own  know-how to run lives calling it a rat-factor searched and found when a Hill is dug .

Many likes of Inflation have been nipped in the bud shortly after appearance failing to find a chance-survival for too long in the area of all generalizations showing causal relationships.

Before the outbreak of WORLD WAR II, an inter-disciplinary group of British Scientists were summoned to tackle Military Management of Weapons .Their  approach spread as Operations Research has been a successful tool with meaningful results which better reflect the relevant influences .

sd/-Dr.Rojukurthi Sudhakar Rao ,

ex-C.S.I.R. Jr.Research Scholar@Andhra UNIVERS'.

On my personal home business HP L'TOP 520 MODEL

12-1-'11, Wednesday .  IST MIDNIGHT.  INDIA .