The PPI came out today, and no inflation was to be seen ("Excluding food and energy, producer prices increased 0.2%, as had been expected. That follows a 0.3% increase in core producer prices in the month before."). What caught me eye, however, was another story. Seems that the Indians are having a problem feeding themselves. Give it a read. To my shock and surprise, the author actually gets it; or, at least, talks to folks who get it:
Monetary policy is generally seen as ineffective in tackling supply-led inflation in food. However, the Reserve Bank of India is widely expected to tighten policy in its Jan. 25 review as food inflation has spilt over to the broader economy.
So, the powers that be will suck up to the moneterists, as usual. And this is supposed to be a millenias long advanced society. Yeah, right.
[UPDATE]
Well, yeah. No consumer inflation, other than food and gas, which are cost-push these days:
"Excluding food and energy, consumer prices made a 0.1% monthly increase, as had been expected."
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