Emerging Market Countries Emphasis Inflation Risks
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Near the end of the year, many emerging market countries made gratifying achievements in economic growth at the same time, economic operation also appeared an inflationary worries. Used to measure the general level of prices and inflation in the consumer price index (CPI) was higher than expected. To this end, emerging market countries have increased their focus on inflation risks, the focus of macro-control to focus on the impact of the global financial crisis to some extent turned against inflation.
Price Index for red
December 13, the United Nations Economic Commission for Latin America and the Caribbean, according to a report published by the Brazilian economic growth this year expected to reach 7.7%. However, the inflation rate will reach 5.6%, breaking the government target of 4.5% expected. That Brazil is mixed. The joy is that the Brazilian economy in the last year negative growth of 0.6% in the case of the quagmire out of recession this year, began to stride rebound; the worry is that, now running at a high rate of inflation.
India began the current round of inflation in the second half of 2008. In the end, although India appears to reduce the signs of inflation, but still higher than other emerging market countries is much more serious. According to statistics published by the Government of India, India's inflation rate measured by the wholesale price index rose in November to 7.48%, 8.58% higher than October's slight relief. To this end, India's Finance Minister Pranab Mukherjee expressed optimism that the government is expected in March 2011 the inflation rate to 6%. However, Suba Rao, India's central bank governor said India's inflation rate is still higher than the level of the central bank can tolerate.
In Thailand, sustained and rapid economic growth, various types of costs generally increased, leading to inflation. November of this year, Thailand consumer price index for the 108.75, the rate of inflation increased 2.8% YoY, mainly due to food and beverage prices rose 5.5%. Thailand's National Social and Economic Development Committee, announced full-year inflation rate in 2010 was estimated at 3.2% inflation rate in 2011 will be located between 3.2% -3.7%.
South Korea's strong economic growth, rapid growth in exports, consumption and investment are growing at the same time, domestic inflation pressure also increases. Bank of Korea data showed the first half of Korea, the average price rose 2.7%, higher than expected 2.5%. Although South Korea consumer price index remained at 2% level, but the average consumer price inflation anxiety on the psychological is constantly spreading.
Living affected
Brazil's inflation to affect the lives of residents. According to the Brazilian Geography and Statistics latest survey, the first 11 months of this year, the Brazilian's rent and property management fees, rose 6.01% and 6.64%. Rising prices and rents in some big cities faster, for example, the capital of Brasilia, rent or more than 11%. Food and beverage prices is directly related to the residents. Data show that food prices in Brazil rose 8.95%, the Brazilian daily life are inseparable from the drink - coffee and beer prices this year were up 9.38% and 9.93%.
Brazil is the main reason for rising prices stimulate domestic consumption to the good economic growth too fast. For the Brazilian economic situation has improved to provide more employment opportunities, wage income of workers has increased significantly. United Nations Economic Commission for Latin America and the Caribbean, the report said, in the first 10 months of Brazil's 2.4 million new jobs. In addition, the depreciation of the dollar-driven international commodity prices, such as oil prices have also increased inflationary pressures in Brazil.
October 2008, the Indian rate of inflation remained at double-digit starts. In 2009, the Indian agricultural drought impact by the failure, more sustained second half of 2009 has led to high inflation. India's inflation, mainly due to rising food prices. Food wholesale price index has been 54 weeks rose by more than 10%, which is to cause great pressure on living in India.
In Thailand, according to Bangkok University on the 1130 random survey of people for nearly forty percent people said that most need government help to solve the problem is rising prices, hope the Government can help control commodity prices. Income has not increased in the case of price increases caused to the Thai people's lives difficult.
Hike into the universal choice
To prevent overheating of the economy and consumption, to maintain macroeconomic stability, the Brazilian government has taken measures. December 3, Brazil's central bank decided to tighten credit, raise commercial banks reserve ratio. This measure is expected to be withdrawn from circulation 61.0 billion reais market liquidity (1 U.S. dollar equals 1.70 reais).
India two years of high food and fuel prices, important reason is lack of agricultural production. Increase investment in agricultural production in the same time, the Indian government has also adopted a tight monetary policy to control inflation. India's central bank to raise interest rates 6 times this year.
Bank of Thailand December 1 suddenly announced benchmark interest rate from 1.75% to 2% raised. Many local analysts believe that the Bank of Thailand aims to further the unexpected rate hike to control inflation momentum. In order to control food prices, Thai Government set up a special working group to investigate all over the country, require the operator to stabilize commodity prices together until the end of this year. To increase the income of residents, Thailand Department of Labor has adopted a resolution to increase the minimum daily wage of the House 8-17 baht to 220 baht or so. Thailand's Ministry of Commerce also helped the country from 3000 to 4000 food store purchase cheap goods, such as rice, eggs and pork, and asked the store set up a special area to 5% cheaper than the market price of -10% of sales.
In order to curb inflation, Bank of Korea raised its benchmark interest rate twice this year, each time by 0.25 percentage points since August 2008 will remain at 2% interest rate raised to 2.50%. President Jin Zhongxiu Bank of Korea said consumer price index rising, agricultural products and rising prices of imported raw materials internationally, to raise interest rates in such circumstances is to maintain price stability, the inevitable choice. |
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By :
Jessie Stone
Submitted
2010-12-22 17:33:34 |
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