Sunday, May 2, 2010

ArcelorMittal (NYSE:MT) Head: Inflation Fears Rising

Head of ArcelorMittal (NYSE:MT), Lakshmi Niwas Mittal, said the huge increase in iron ore prices in the steel industry could result in higher output prices, where it could push up inflation substantially.

This would hit India hard, where the inflation outlook could reach much higher than 2009-2010 for the wholesale price index. The costs would be incurred from across the globe, implying inflation will be significant on that front as well.

Increasing costs in many commodities will also push prices up, especially in the manufacturing sector, where inputs would be much higher.

Almost across the board, with the exception of cement, industrial commodities have surged upward in price, which also effect the eventual outputs.

In India inflation in manufactured goods could reach as high as 6.8 percent in 2010-11, in contrast to 3.2 percent the year before; more than doubling in that short period of time.

There seems nothing to show that this will be different in any other region of the world.

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