Rising inflation hits living standards for India's middle class

Proof here that inflation is not just a developed world phenomenon: it's a global issue, not least in South Asia, not least in Sri Lanka as a result of the financial crisis, and here in India, where the middle class are squeezed by the cost of living.

This is an interesting article, it highlights how the middle class are feeling the pinch - entry level consumer goods have seen falls in sales but not luxury goods, evidence that the distributional effects of inflation fall unevenly, even in developing economies.