tag:blogger.com,1999:blog-19649274.post4879213435991164038..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Capital controls against debt flowsAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-19649274.post-30228012634595700992007-06-06T18:24:00.000+05:302007-06-06T18:24:00.000+05:30Dear Ajay,I agree with your general outlook on inf...Dear Ajay,<BR/>I agree with your general outlook on inflation, that it's a concern, and that it should be brought down. But can the recent WPI decline really be attributed so directly to the currency appreciation? Many of the brokers had predicted it would slow down simply because the yoy comparisons were getting more favorable - i.e. there was a spike in some items 12 months ago, so it would be harder to compound inflation at the same pace unless further spikes in key items came. Also, what are the chances that inflation simply looks better because of the artificial price-capping regulatory activity (e.g. threats to steel producers, tarrif barriers trapping cement capacity within India, etc.)?<BR/>Andrew WestAnonymousnoreply@blogger.com