Thus, what better source to know how inflation is creeping into the price of various goods and services than this retail giant. And if the comment of its CEO is anything to go by, things are not looking all that great on the inflation front. Moneynews reports that the one retailer prepared to cut costs to the bone to save money for consumers is now warning that the price will rise very soon. "We are seeing cost increases starting to come through at a pretty rapid rate," warned the CEO of the company, Bill Simon.
So, there it is. If one of the largest firms in the world and the one that is known for its almost manic obsession with cost control feels it will be helpless against forthcoming price increases, we better believe him than a certain Mr Bernanke. The US Fed Chairman continues to believe that inflation is not a threat as of now. But that is where he seems to be missing the plot. Inflation can lie dormant for a while. But once the heightened money supply starts entering the system, it can cause serious damage before the likes of Bernanke realise. And that is exactly what the Wal Mart CEO seems to be warning us about. Furthermore, with the Indian economy getting more and more integrated with the global economy, higher inflation in some form or other may also visit Indian shores.
Chart of the day
An important event happened last month that we believe did not get the attention it deserved. It was important because it marked the end of a 115 year reign. The end of US as the world's largest manufacturer that is. Yes, that's correct. The US is no longer the world's largest manufacturer. As today's chart of the day shows, China nosed ahead of the US in terms of manufacturing output in 2010. In fact, China's manufacturing output was greater than even the combined output of the six largest manufacturers after the US. Important to add that this is not the first time the dragon nation has emerged as the world's largest manufacturer. It enjoyed that status way back in the period between 1700 and 1850. Also interesting to add that another nation that gave China a tough fight a few centuries ago, was none other than our very own India. As of now though, India's output is just around 10%-12% of China's. Clearly, India does need to cover a lot of ground. For the latest updates PRESS CTR + D or visit Stock Market news Today
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