What is statement regarding the inflation

In the business market and in economy both have inflation. Money inflation of India is in highest position. Government has not idea what have to do because they can’t do anything if they have.

I have already mentioned about government policy and its step to stop the inflation all is useless. Governments don’t want to cut capitalist profit because the government is for capitalists.

Now, to increase six pay scale of government employee it thinks that all the inflation will be solve. They don’t think how many people is government employee. Even they don’t think that how much they have given their incremental.

If government doesn’t stop capitalist profit they can’t stop inflation. In spite of it will be temporary solutions.

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Investment of Tatas

Tata is one of the biggest firms of India. We know, it has Steel manufacturing and other plants in North India. Before some days there was news that Tata will not hike steel prices or you can say that was for all manufacturers that they will not increase steel prices now.

But that was not profit or lost story because I have already mentioned in my previous post that all the company and manufacturers are getting more revenue however Indian economy is in inflation. In spite of this is another matter I am not talking on that and not also about market. I am talking about now Tatas investment.

In recent news Tatas is going to invest about $2 billion in telecom Industry. It is good or bad I don’t know because already in telecom industry there are many big brothers who are taking over each other like – Vodafone, Virgin, Bharti etc.

About the news HT writes, “Tata Teleservices plans to invest $2 billion in rolling out GSM-based mobile phone services and expand its current network of CDMA phone services — a move that would give consumers more options and could help bring phone rates further down.”

I think it is not the 1st investment for Tatas. The company is famous for SEZ also. On the SEZ matter in Bengal there was a great struggle against Tata. Now, it has decided to invest their money in telecom industry.

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Dollar is rising

In the business and market we can't remain without talking about dollar. There is always demand of dollar because all the market of world has been captured by dollor. Some months before Indian rupees were going to strong but soon and dollor was down in India. That time dollor was about 38 rupees of $1. Now it is increased and it is about 42.38 rupees of $1.

Now, in the competition of Euro dollor is also going to rising. Some months before Euro was going to stronger. But now the dollor is back. About it HT writes, “The dollar rose to a one-month high against the euro as the pace of job erosion in the US slowed while a decline in German retail sales indicated economic weakness is spreading to other developed countries.” further it writes, “The dollar appreciated 1 per cent this week to $1.5564 per euro, from $1.5709 on July 25. It touched $1.5515, the strongest since July 24. The dollar dropped 0.1 per cent to 107.71 yen, from 107.84. Japan's currency gained 1 per cent to 167.55 per euro, for the biggest weekly gain since early May. It touched 166.99 on Friday, the highest level since July 17.”

It is clear about dollor now that it is rising. On the other hand Pound is going to weaker. Pound is fell upto $1.9727. Its all showing the market expand of dollor, nothing else.

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Why Inflations Pressure is continue?

Today's news shows Indian inflations is continue. It is now on 11.89%. It has broken all the previous records and all the consumer product is going to dearer. About it Hindustan Times writes, “Inflation is hovering around a 13-year high of 11.89 per cent for the week ended July 12. RBI said that pressures from international food and energy prices have amplified inflationary expectations in India.” It is not only in India but also it is in all over world.

On the one hand inflations is growing and consumer goods are going to be dearer. On the other hand P. Chidambaram has no idea to control this inflations. He is saying to pay all the bills to decrease inflations rate.

An Another story is going with it. All the companies are getting their net profit in this quarter about more than 50% average. What is the cause that consumer goods are going to be dearer, inflations is going higher day by day and on the other hand companies getting profit always. What is the cause behind this?

In this quarter Tata Steel has get about upto 21% net profit, Hidustan Media is on 10% and GAIL is on 31% of rise. What is the cause of its?

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