Asian Inflation Begins to Sting U.S. Shoppers
This article is about how inflation is affecting American customers. Inflation usually defined in economics as “increasing prices of set of goods and services.” Asian developing countries like China, Vietnam, and India where labor cost was low, are producing almost half of American imports. As consequences of inflation during last years in these countries is affecting American consumers hardly making they to pay more for goods they demand. In Vietnam price rose 19.4% from March 2007 to March 2008 because of inflation. In Foshan, China price also was raised by 10% from where bathroom fixtures are imported to North America. As a price of goods is increasing workers are also asking for higher wages which means that customers will also cover this additional cost. At the same time in Philippines and India inflation is keeping rising. According to government’s Consumer Price Index the prices of goods were increased by 4 % in United Sates. Additionally it is urgent to slow down inflation in order to take pressure of inflation from customers.
This article is about how inflation is affecting American customers. Inflation usually defined in economics as “increasing prices of set of goods and services.” Asian developing countries like China, Vietnam, and India where labor cost was low, are producing almost half of American imports. As consequences of inflation during last years in these countries is affecting American consumers hardly making they to pay more for goods they demand. In Vietnam price rose 19.4% from March 2007 to March 2008 because of inflation. In Foshan, China price also was raised by 10% from where bathroom fixtures are imported to North America. As a price of goods is increasing workers are also asking for higher wages which means that customers will also cover this additional cost. At the same time in Philippines and India inflation is keeping rising. According to government’s Consumer Price Index the prices of goods were increased by 4 % in United Sates. Additionally it is urgent to slow down inflation in order to take pressure of inflation from customers.
solutions:
There is much kind of methods to control inflation. Vietnam’s central bank had ordered to commercial bank to resume buying dollars within the tight range of exchange rate. Also to decline the inflation many banks refusing to accept dollars in large amounts and dollars are no longer mighty because of America trade deficit which itself causes inflation in developing countries. I saw that in Korea also exchange rate of dollar is so low. China and India decreasing inflation by combination of price control and subsidies even Vietnam has imposed price control on transportation and gasoline. I understand that customers are main carrier of inflation causes and to protect and keep our customers we should carefully make decisions as a manager that are less harmful to them because there was a situation when businessmen making fake inflation by raising commodity price beyond government control and washing black money.
Reference:http://www.nytimes.com/
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