guys you are associating real estate and electronic prices with inflation, but actually it is not the case.
If you check the inflation adjusted commodities, the first commodity is metal or say gold. Their prices are going rocket high. Currency may not stay or hold the value but metal (gold silver platinum, even steel
) hold their value irrespective of their price.
Can't agree with you there. Me and the other girl I quoted gave an example didn't say thats the root cause of inflation. The prices of metals - copper, steel, and gold—have all risen sharply, along with prices of sugar, soybeans, oil, vegetables and natural gas as well which are far necessary to have then gold!
The rising industrial and consumer bases in China and India, four straight years of global economic growth. Production of most of these commodities is increasing - just not rapidly enough to keep up with demand, or with perceived future demand. At root, prices are rising because people are consuming more of the stuff. This is another valid reason for inflation.
Guess what, the price of gold may be sky rocketing and people still buy it at such higher price! because they are cosuming gold as an investment or safe return then investing in currency/bank and ask any person who deals in gold and he will state it investors are buying gold like never before in 2009 and hence the prices of gold are sky rocketing.
Oh yes, the currency of any country depends on how much gold does that country carry but thats a seperate issue.
Lets talk about metals. Companies like Tata were able to make Nano - The world's cheapest car'' in what year 2009? This year is the worst hit by inflation. How do you justify that Tata actually managed to buy raw materials to make a 1 lac car? Do you know the freight it takes to get these material, build a car and then ship to the dealers? I'll have to explain you ''e-procurement'' and ''e-sourcing'' on how companies today can save 15% of their spending in procurement. And now all the big giants are moving towards e-procurement which is helpin them save a lot of money.
