Monday, May 12, 2008

'Inflation is after all an index and is a basket of many commodities or services.'

Easy to toss inflation blame on hoarders

Prices of vegetables have shot through the roof in the past dew days. Not even fruits have been spared. Even the wealthy has not been let off from the bite of inflation. May be the effects of the fuel price hike. No, no…surely some hoarders must be storing the goods, or else how can goods suddenly become so expensive overnight?
Disagrees Dr Sunil Rongala, who holds a PhD in international economics from Claremont, California. “People, who are searching for a guinea pig to put the blame on, usually float these sorts of ‘hoarders and middlemen’ conspiracies. For one, hoarders are faceless and it’s usually very easy to put the blame on faceless people,” he tells Business Line.


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