#INFLATION IN India does not Exist @nsitharaman
Prices of most #Huble & #affordable#snacks available in #Mumbai—vada pav, bhaji pav and samosa pav—have increased by Rs 2 to 5 in view of the hike in rates of edible oils & commercial cylinders ...2nd time in 2022 #Shrinkflation
Lets start with the Article from #APRIL2022... The rate of oil has suddenly increased by Rs 800-Rs 900 and the price of gas has also increased. Earlier, we used to pay Rs 1,600 for gas and now it stands at Rs 2,300. Green chilly too has become expensive.
Earlier we used to sell each vada pav for Rs 20 but we have now increased it to Rs 22. Similarly, we are selling samosa pav for Rs 23 as opposed to earlier Rs 20, and bhaji pav for Rs 22, up from Rs 20
Now with 2nd Nov 2022 Article on #Inflation and #Shrinkflation of the famous #Pav in the #Vada. The cost of the humble pav has now gone up to Rs 5 apiece from Rs 3.50-4 in 2021... Bakeries and suppliers have raised rates by 50 paise to a rupee as recently as october.
Why ? Every Raw Material for the Pav has witnessed steep inflation
#Shrinkflation of the Pav .. they are becoming smaller and lighter
Some will wait to hike from Next year..
If you recall, I did a thread on how the famous #AlooTikki Burger by @McDonalds#India has hiked its prices by almost 40% since Pre-covid....
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People are asking WHY DID #INR to fall so sharply on FRIDAY to 83.64/USD?
A quick 🧵 explaining why …#RBI
Who BENEFITS most when INR Depreciates?
✅It’s Financial Year end and @RBI has PROFIT targets & DIVIDEND targets of 120,000 Crores to pay Govt of India
✅ when INR Depreciates (#USDINR Rises), @RBI makes profits since it’s ASSETS are USD BONDS/GOLD & it’s LIABILITIES is INR
✅ When #INR depreciates (#USDINR rises), EXPORTS become competitive and IMPORTS become cheaper
✅ When #INR Depreciates, The BIGGEST component of GST (IGST of GST) grows faster since IGST is levied on IMPORTS, Basic & Intermediate Raw Materials, Inventory
#NRI #Remittances will not only #COLLAPSE but they could reverse
A quick thread with implications for the #INR
#NRI #Remittances will not only collapse but they could reverse as outflows unless the DEPOSIT Rates offered by Indian Banks to NRIs are at-least 6-7% $ Rates
Today the US Rates are 1) 4.7% on the US 10yr 2) Investment Grade US bonds offer $6.5% 3) MBS Securities offer $7% at-least 4) US High Yield Bonds are offering $8-9% pa
Compared to that FCNR deposits are at just 5.5-5.8%
FIRST: Every litre of Ethanol, Govt India will lose Rs15-20 in Tax Collections since:
👉Cost of Procuring PETROL is Rs45/lt
👉Cost of Procurement of ETHANOL is Rs65/Lt