Inflation

[mhr123]

This is how food prices have risen since 2007: * Food articles: 7.02% (in 2007) to 17.41% in January 2010. * Food products: 3.43% (in 2007) to 22.55% in January 2010. * Food commodities: 5.60% (in 2007) to 19.42% in January 2010. * Foodgrains: 6.27% (in 2007) to 17.89% in January 2010. * Cereals: 6.27% (in 2007) to 13.69% in January 2010. * Pulses: 2.14% (in 2007) to 45.62% in 2007 in January 2010. * Rice: 6.05% (in 2007) to 12.02% in January 2010. * Wheat: 6.77% (in 2007) to 14.86% in January 2010. * Dairy products: 6.08% (in 2007) to 12.87% in January 2010. * Eggs, fish and meat: 6.38% (in 2007) to 30.71% in January 2010. * Sugar: (-)14.69% (in 2007) to 58.94% in January 2010 Inflation hits you badly as prices keep rising. You end up spending more money for things that you could buy for less earlier. What you could buy for Rs 100, some months ago, would now cost you nearly double. As a result, your savings will come down. As prices rise, the purchasing power of money goes down too. What would a poor person do.. see the rise in pulses. Now Even Daal Roti is equal to non veg stuff.(

[Guest DeveGowda]

This is how food prices have risen since 2007: * Food articles: 7.02% (in 2007) to 17.41% in January 2010. * Food products: 3.43% (in 2007) to 22.55% in January 2010. * Food commodities: 5.60% (in 2007) to 19.42% in January 2010. * Foodgrains: 6.27% (in 2007) to 17.89% in January 2010. * Cereals: 6.27% (in 2007) to 13.69% in January 2010. * Pulses: 2.14% (in 2007) to 45.62% in 2007 in January 2010. * Rice: 6.05% (in 2007) to 12.02% in January 2010. * Wheat: 6.77% (in 2007) to 14.86% in January 2010. * Dairy products: 6.08% (in 2007) to 12.87% in January 2010. * Eggs, fish and meat: 6.38% (in 2007) to 30.71% in January 2010. * Sugar: (-)14.69% (in 2007) to 58.94% in January 2010 Inflation hits you badly as prices keep rising. You end up spending more money for things that you could buy for less earlier. What you could buy for Rs 100, some months ago, would now cost you nearly double. As a result, your savings will come down. As prices rise, the purchasing power of money goes down too. What would a poor person do.. see the rise in pulses. Now Even Daal Roti is equal to non veg stuff.:((

Inflation makes middleClass people poor....

[mhr123]

When i was in India two mnths ago , i realized the heat of inflation . A Rs 100 note means nothing today , u can't even buy 2 kgs of Dal with that.. ... no medicine is below Rs 50. Lunch or a Dinner in a decent restaurant for 4 is easily a 1000 bucks

[Clarke]

I say this time and again, that scumbag Sharade Power has done bull crap as an agricultural minister. He prolly spends more time on cricket since it fills his coffers easily. It is so bloody pathetic and shameful, farmers commit suicide by the dozen every week owing to poverty and on the other hand prices of essentials keep going sky high. Atleast PC did his part in waiving loans to farmers; thats the least we could to for the poorer farmers. The massive inflation in essentials seems similar to the sudden oil price rise in 2008. Demand may increase by 5% but that does not warrant inflation of 50-100%. There is certainly some foul play by the middlemen. It is ironic that Lal Bahadur Shastri made the slogan "Jai Jawaan Jai Kissan" popular in the sixties while much of the country lacks essentials such as no guaranteed means of irrigation. That is what will continue to hit hard unless things change. Are our changing dietary patterns also responsible ? The increasing consumption of meat and junk food must surely require more land resources, already scarce in our country, and thus impact prices of other agricultural products.

[Ram]

Well, this is one of the drawbacks of market economy. The market forces determine the price, not the Govt. Sure, the govt. has some limited tools in its hand but there's only so much impact it can make. The best thing that can happen to India right now is to have a above average monsoon, a bountiful crop and falling oil prices. That should drive down prices, at least a bit. But you gotto feel for the average resident of a third world/developing country. His income is among the lowest in the word, while his expenses are among the highest. I find it incredibly ludicrous that an average Indian consumer, with an annual income of $1500/annum has to pay 55 rupees/litre of petrol, while an average American consumer with annual earnings of $45,000, has to 75 cents (roughly 33 rupees) for every litre of gas. And, when the Asian govts. try to help their people out by doling out subsidies, the World Bank wields its ugly stick, blocking out future loans, while at the same time a lot of Western countries run trillion dollar deficits that help sustain a lavish social security program. When any Asian nation collapses, they are essentially on their own. But when countries like Greece, Portugal and Spain are running massive deficits, their European cousins will promptly come to their rescue, while the rest of the world watches silently.

[ViruRulez]

Frankly speaking I am not against a bit of inflation and increase in prices... it is a fact that people's earnings in India are increasing and so it might be justified as per many economists .. but the bigger problem is that India is still not as strong an economy where there is enough money for the normal people .. the govt. is nowhere near to infrastructure development or to provide basic amenities to people.. in the west, there are social security and free medical etc. which justified a bit higher prices .. but there is hardly anything in India for which we should pay upto twice the cost within a year for many articles One of the biggest reason why India cannot be US or West so easily is because of the corruption. Hardly anything happens here in India without corruption. And public wealth is wasted and the benefit does not actually go to the public. Secondly, even if some wealth is utilized then the politicians use it for their own benefit and vote bank instead of using it for the general masses. The recent rail budget was a clear example of the misuse of pubic funds. Mamata had announced several Tagore Museums, loads of trains to and from West Bengal and tons of other useless things which hardly meant anything to the normal except to get her votes in West Bengal and get her the Bengal ministry. WTF did she need to spend those hundreds or maybe thousands of crores for her own vote bank instead of letting it be used for something more useful for the public. I really get irritated with this mismanagement of Indian democracy by some selfish and brainless politicians. I had a lot of expectations from Manmohan Singh but he has hardly done anything which might be called brilliant from an economist point of view. I seriously feel that there is need of a new party or governance which can take the country from this developing phase to the developed phase. Right now I do not see any political party or individual looking beyond their own benefits and with a unwavering desire to work for the nation from the core of their heart.

[ViruRulez]

The inflation is in basic requirements like food, fuel etc. and that is the most pathetic thing about the recent inflation. And one more thing. I feel that Sheila Dixit and the Delhi Govt. is perhaps one of the best governed states in the whole of India. At least they try to give out at cheaper prices and are still working on loads of projects for the country. Sheila Dixit has also announced that Monorail will also come to Delhi after metro within the next few years. There is significant and evident development and work for the people at least in Delhi I feel. And there is a lot lesser dirty politics in Delhi compared to the rest of the states and even national politics.

[Brainfade]

Well, this is one of the drawbacks of market economy. The market forces determine the price, not the Govt. Sure, the govt. has some limited tools in its hand but there's only so much impact it can make.

Don't forget that oil prices are a strong driving force for inflation. And who in India controls those prices? The beloved government. Therein lies (a big part of) the problem.

[mhr123]

Frankly speaking I am not against a bit of inflation and increase in prices... it is a fact that people's earnings in India are increasing and so it might be justified as per many economists .. but the bigger problem is that India is still not as strong an economy where there is enough money for the normal people .. the govt. is nowhere near to infrastructure development or to provide basic amenities to people.. in the west, there are social security and free medical etc. which justified a bit higher prices .. but there is hardly anything in India for which we should pay upto twice the cost within a year for many articles One of the biggest reason why India cannot be US or West so easily is because of the corruption. Hardly anything happens here in India without corruption. And public wealth is wasted and the benefit does not actually go to the public. Secondly, even if some wealth is utilized then the politicians use it for their own benefit and vote bank instead of using it for the general masses. The recent rail budget was a clear example of the misuse of pubic funds. Mamata had announced several Tagore Museums, loads of trains to and from West Bengal and tons of other useless things which hardly meant anything to the normal except to get her votes in West Bengal and get her the Bengal ministry. WTF did she need to spend those hundreds or maybe thousands of crores for her own vote bank instead of letting it be used for something more useful for the public. I really get irritated with this mismanagement of Indian democracy by some selfish and brainless politicians. I had a lot of expectations from Manmohan Singh but he has hardly done anything which might be called brilliant from an economist point of view. I seriously feel that there is need of a new party or governance which can take the country from this developing phase to the developed phase. Right now I do not see any political party or individual looking beyond their own benefits and with a unwavering desire to work for the nation from the core of their heart.

Viru 0% inflation is not practical we all agree to it , problem here is inflation is above 15 % and its surely a concern . How on earth can a person survive on these rates... u state that

it is a fact that people's earnings in India are increasing and so it might be justified as per many economists

, i disagree on it . Only a portion of employees earnings have increased namely IT , MBA's , Doctors and Engineers , rest are all the stagnant . Neither the govt. jobs give them a good salary neither Pvt. sectors. Its quite obvious that if the inflation wud increase it wud invite more corruption and more scandals. There shud be MRPs on each and very stuff, so that end customer won't be exploited.

[ViruRulez]

Viru 0% inflation is not practical we all agree to it , problem here is inflation is above 15 % and its surely a concern . How on earth can a person survive on these rates... u state that , i disagree on it . Only a portion of employees earnings have increased namely IT , MBA's , Doctors and Engineers , rest are all the stagnant . Neither the govt. jobs give them a good salary neither Pvt. sectors. Its quite obvious that if the inflation wud increase it wud invite more corruption and more scandals. There shud be MRPs on each and very stuff, so that end customer won't be exploited.

Govt. employees had 40% pay hike just the last year .. most state employees are getting good pay hikes this year AFAIK .. but yes for the common man it is a big problem .. I agree and that is why I said growth has not been uniform neither extra-ordinary for which such inflation can be accepted MRP are there on all products but companies change MRP as per the market rates .. on vegetables or groceries there can never be MRP and that is mainly decided by availability in the market .. but corruption comes sometimes which also result in sudden price hikes