Inflation at 12.42% in Sep 2008

I see inflation softening... and I think it should be back to around 5-6% by march 2009 .... this is based on macro economic factors...

Global Inflation riding on the bull now

Inflation- Thats a global word now.
China, India are feeling most pressure from it and fighting to cool it down from double digit figure to sub 5% levels. With rising crude prices and OPEC not in mood to increase demand, I guess these two emerging markets will have to struggle for some more time with Inflation numbers.
Western markets too are feeling the pinch now, people in west are reducing their long drives and expenditures.
Interesting thing however is that dreaded word "Recession" is no more heard. There is still sense of optimism in global market of things recovering back in medium term and everything will be alright.
I feel too there are chances of the above facts. OPEC meeting last sunday resulted in divided views by members which means crude is soon going to see correction in prices. Saudi and Kuwait are pro-demand increase so as to fill the demand-supply gap.

Oil..Oil...Oil.. That is latest news in every circle

Today crude is trading at $130 and see no sign of retreat to lower number. OPEC still claims that they see no problem in supply-demand gap, whereas countires across globe are witnessing huge oil crisis.Most effected are ofcourse emerging nations like India and China. Commodity is highly dependant on oil prices since majority of tranportations means are based on oil and slight increase in oil results in a direct propotionate hit on inflation numbers.
Analyst say that they see some corrective measures coming into picture by year end, and that crude should be down to $80/barrell price.
Now, what has to be seen if how economies are going to take the balanced approach to minimise the impact of crude hit

China Inflation at 8.7%

China came out with their inflation figure and it is 8.7% which is actually a high figure. Inflation is directly linked to price rise including commodity prices which effects country growth trend.
This shows that in globalised world, however secluded a country remains cannot be left alone from global economic signs like slowdown or growth.

China too has been impacted by slowdown in western world and has seen 15-20% correction their markets too. Time to see how China copes with its image to maintain its country business in coocon environment policy.