Is rising Inflation a matter of concern?

Offcourse, the rising inflation is matter of concern, we have seen that food inflation that is at 17.40 % on 16 jan,2010, which is very high. The prices of food items are increasing. the potatoes prices has been soared by 50% plus. Similarly the prices of most of the essential commodities , vegetables, pulses , sugar are soaring. The Reason for increasing the prices is lack of supply, In india the inflation is measured by WPI, the non food inflation has reached from 1.32 to 4% approx, and the prediction is that it will touch to 8%. To control this rising inflation , the RBI has hiked CRR.So the govt is taking steps to control this sharp rise in Inflation.This is one of the major problems besides infrastrutre, Fiscal deficit etc.

Bubble always bursts

All you remember that during march ,2008 our india had given first time ever the 9% GDP, sensex touched 21000 pts, inflation was no matter of concern it was 4% which is consider ok, job market had enough opportunity but
suddenly picture got changed, stock market started to crash down because of global slowdown (lehman brother bankruptcy, subprime crisis) stock market ended up at 8000 pts, everybody was feeling jittery, inflation reached highest ever 12%, GDP fell down to 4-5%, no job remained more.Unlike USA, in india we had no recession ,it was mere a slowdown.It was a correction. Always Bubble follow the burst.