Jitters About Jitters
January 26, 2016 Leave a comment
Read between the lines, especially on interest rates.
Not sure I agree with him on inflation. The labour component of many goods and service combos means higher prices(inflation),at least at a level that the RBI is missing. For example, check the prices that are trending upwards on street food. The likes of Vada Pav and Chinese Bhel are not my regular dinner, but is so for much of the labouring classes of Mumbai. One step above, at the cheapest eateries of the Irani and Udupi variety, the increase in prices is steeper and/or quantities are smaller or formerly free side-dishes are now absent. Check the substitution of urid dal with other cereals, coconut with besan and the emerging story is different. People at the margins now have clothes and shoes, maybe even mobile phones, but not everyone is able to afford a satisfying and nutritious meal. I’m struck by the similarity with a lot of the domestic cost cutting content on the internet originating from the US and Russia.
Thinking that the RBI needs some real agriculture experience.