Saturday, June 14, 2008

Rate of Inflation

Well a couple of years down the line we were not able to understand this term and it was a new one for us. But nowadays everyone of us are aware that what “Rate of Inflation” means.

Yes it is the rate at which the cost of living increases. Over a decade back the rate of inflation was approximately 3% to 4%. But it later increased to 6% and in the financial year 2008-2009 it has touched almost 8.35%. Hope it touches the 9% mark. India is a very poor country. But its the place where the rate of inflation is highest in the world.

What is the reason of this steep increase of rate of inflation. Is it because of global slowdown or is it because of the mismatch between consumption and supply? I would say that both the above or absolutely not the reason. Then what is making the things very expensive?

Before starting to talk in this topic, I would blame the government in being a nincompoop in dealing with this. After the last national elections the cost of living or say the rate of inflation has touched the sky and is still rising. After blaming the first accused, we should now move on to the greedy business men who wanted to make a lot of money in a short time by targeting the well paid software engineers. Is this called the growth of Indian economy? Is this the growth that the politicians brag about? They increased the tax limits of our benefit huh? So are they going to run the government with less money this fiscal year or have they just reduced the govt's earnings this year for securing their vote bank? I really don't know, perhaps we have to ask them. :)

Decreasing the rate of inflation is a never ending topic to talk about, where one section of the people blame others and vice versa. For eg, the software engineers blame the shopkeepers to increase the cost of everything because there is an unwritten rule that well paid professional should by everything expensive. The rent got increased, the cost of basic needs for living got increased, the cost of purchasing a house got increased. In short everything increased. But still the govt talks about the growth of economy. They don't know a small thing that a lot of villages in India still do not have the basic needs of living. No means of transport, communication, medical facility etc,. The list goes on and on.

I don't know what to type. A lot of things needs to be discussed or written down, but I need to keep my blog postings short else you wouldn't be reading it. I am sorry if my above article is not in correct order as they have in the newspapers. But my intention was to speak out something on this topic and express my views to the world. All your views and comments are welcomed. Thanks for reading.


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