Indian inflation rises

The first monthly data released by the Government of india on 14^th Nov 2009 showed inflation more than doubled to 1.34 per cent in October compared to 0.5 per cent a month earlier as essential food items turned costlier.

Interestingly, the build-up inflation in the financial year so far was 6.13 per cent compared to 5.99 per cent in the corresponding period of the previous year.In variance with the earlier practice of a weekly release, this is the first time the government has come out with comprehensive inflation data on a monthly basis with 1993-94 as the base year.

On an annual basis, prices of potato have doubled since October last year, while onions were expensive by 37 per cent. At the same time other items like vegetable were costlier by 23 per cent, sugar by 45%. If the inflationary pressure continues then RBI likely to tighten the credit policy in early next year.

Norway is the best place to Live. UNDP report

Norway takes the number one spot in the annual United Nations human development index released. The index compiled by the UN Development Programme (UNDP) ranks 182 countries based on such criteria as life expectancy, literacy, school enrolment and gross domestic product (GDP) per capita.

Norway, Australia and Iceland took the first three spots while Niger ranks at the very bottom. The bottom three ranked countries in this year’s HDI, in order, are: Niger, Afghanistan (included for the first time since 1996) and Sierra Leone.


The UNDP said the index highlights the grave disparities between rich and poor countries. This year's index was based on data from 2007 and does not take into account the impact of the global economic crisis.


The top ten countries listed on the index are: Norway, Australia, Iceland, Canada, Ireland, the Netherlands, Sweden, France, Switzerland and Japan.

Chemical Industry on a path of muted recovery

Chemical makers have grown more confident that the global economy and industry demand are pulling out of one of the deepest dives since at least the early 1980s. Second-half economic forecasts issued recently by ACC and German chemical industry association VCI (Frankfurt) called an end to demand declines but warned of slow recovery. While the surge in energy and stock prices from early 2009 levels would seem to signal a strong rebound, chemical makers appear to be bracing for a slow recovery.

European petrochemical sector shows that the market has stabilized but producers acknowledge the need for further rationalization. For operating rates to come back to good levels, some capacity will have to shut down in Europe, claims leading producer . The same is true for the U.S. Dow Chemical announced earlier this month that it would end styrene production at Freeport, TX as it continues to trim North American olefins and styrenics production to match underlying demand and reduce its exposure to basic chemicals.

Industry challenges like overcapacity, weak demand, and broader economic concerns arising from high levels of unemployment and a still-fragile financial system are likely to mute recovery. The question is whether this development is a sustainable one and long lasting basis.There are still unsolved issues caused by the financial crisis and the chemical industry is not yet on a solid growth path at least as of now.

ACC’s recently released third-quarter outlook shows that conditions have stabilized but notes that 2009 activity will fall well below year-ago levels. U.S. chemical industry output is expected to fall 10.7% in 2009, before posting a gain of about 1.5% in 2010. Demand is clearly moving off the bottom but chemical makers could face a slow path to full recovery.