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The Times of India reported food inflation last week to be at 15%. That's clearly not sustainable as worker's wages rise significantly slower.
by thomas11 16y ago
The Times of India reported food inflation last week to be at 15%. That's clearly not sustainable as worker's wages rise significantly slower.
- copper 16y agoThe IMF predictions are pretty amusing[1] too, if you like that kind of thing. [1]: http://www.tradingeconomics.com/india/inflation-average-imf-data.html http://www.tradingeconomics.com/india/inflation-average-imf-...
- eitally 16y agoNot in the IT sector. For the last several years we've seen 20-30% salary increases annually. I would argue it's more due to market conditions and the hiring practices of the big consultancies than inflation, but probably a third to half of that is an inflationary response.
- thomas11 16y agoSure, but the vast majority of Indians are not in the IT sector. These salary increases in IT are great for engineers, but they also work against India as an offshoring destination because of the rising costs.
- eitally 16y agoYes, exactly. It will be interesting to see what happens in the next 3-5yrs if salary inflation doesn't slow down or reverse and external investment is similarly reduced.