WEALTH MANAGEMENT WEALTH MANAGEMENT
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In April 2009, Toor Dal, a staple ingredient in Indian cooking used to cost $1.01 (£0.65) for a kilo. By the end of 2009, the price per kilogram shot up to $2.14 (£1.39).
In Argentina, the government has been sending out fleets of trucks with fish at discounted prices to poor neighborhoods to fight a 30% increase in beef prices, in a country where the cow is king1
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Inflation at moderate levels serves as a good indicator of a healthy economy but high inflation may indicate the opposite. It may be because there is too much money in circulation, there are too few goods being produced or it can be due to a case of supply-demand mismatch.
This comes into play due to several factors such as high population growth or poor weather affecting harvests. Inflation may also be caused due to an increase in prices of input materials, natural calamities and wars. Middle men who control the delivery of products into the final market can also illegally hoard materials to create an artificial demand thereby pushing the prices up. Speculative trading in commodity markets has also been cited as a cause of price increase.
While there are several ways of creating an inflationary situation, there are only a few ways of resolving it. A nation’s government can resort to monetary and fiscal measures like hiking the interest rates and increasing export taxes on essential
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SOURCES; HTTP:// WWW.ALTASSETS. COM/PRIVATE-EQUITY- KNOWLEDGE-BANK/ SURVEYS/ARTICLE/ NZ17437.HTML AND HTTP://IDEAS. REPEC.ORG/P/EBG/ IESEWP/D-0773.HTML
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