Inflation is about a context when more money in the market than the products that can be bought with.Simply, today there is higher demand of food than the money in supply.So you will require more money to buy less and lesser food.Inflation depends on the basic materials like food.
The free economy works on an optimism that the enterprises will able to sell the products to the customers who are temseleves optimistic that they can get consistent supply of money to buy them.If the optimism about the future evaporates then the producers wait with their wares to sell but the customers do not show up.Insecurity is the cause of any recession.
So few pointers for the mining industry:
1. Cost cutting not compromising competitiveness is a way forward.
2. Invest in spurring demand.
3. Rationalise the production so as to work on the stock and respond adequately.
For rest of the pointers write to me at jayantaism@gmail.com
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