Why people cry when they see every Thursday in news channel/every Friday in the morning while reading newspaper.
They find that the rate of inflation is going down every week, but food prices ………????
They find changes but not what should be and what a common man expect.
What really happens, food prices going up and up. We see that there is an adverse relationship between inflation and food prices.
In Economics, low inflation rate means, decrease in prices and increase in purchasing power of money.
Are the things going accordingly……????
It sounds interesting that India is the possibly the only significant country in the world which uses WPI (Wholesale Price Index) instead of CPI (Consumer Price Index) to calculate inflation. And this is the reason why inflation figure do not have much relevance for a common man in India.
But there is a question in my mind that according to inflation rate (WPI based) wholesale price is going down, why not consumer price…..????
Friday, June 26, 2009
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