India's Inflation Crisis -Daily Life's Perspective - Instablogs
India's Inflation Crisis -Daily Life's Perspective
Abirami , chennai: Apr 26 2008
Made Popular Apr 26 2008
India :

I went to my friend who is a tailor. As I gave her my dress for stitching, she said ‘from this month the stitching charges are increased by 10%’India's Inflation Crisis -Daily Life's PerspectiveI swiftly reacted ‘but why have you increased the cost? It almost comes to the cost of a ready made dress!’
That’s how it all started.
We had a casual discussion, which made me think a great deal.
We were discussing about the inflation in our prices, my friend was much worried about the rising oil prices I too agreed to her.
We discussed how this situation will make life tougher for upper middle class people like us. My friend stated that the 50% increase in prices of daily food products affected her monthly budget, and even her small business was getting into trouble due to this.
I asked her how her business was in trouble.
She has a small boutique. Her problem is due to the fact that the big shops have no trouble in increasing their prices, while small shops like hers find it hard to attract customers with high priced products.
One thing that was bothering me was, all this inflation stuff affects mainly the self employed middle class & upper middle class people.
Why the rest of the society is not bothered?
That geared me to think.India's Inflation Crisis -Daily Life's Perspective
The low income groups gets all their basic stuffs for free (thanks to our government that gave them TV, rice and just forgot give them a decent work). This also makes them even more lazy and irresponsible, the poor remain poor. Anyways they don’t have much to loose. Recently my house maid threw her TV into garbage (note she didn’t give it to any one) saying that it was not working, if it was mine I would have at least tried repairing it! When I asked her about it, she simply said, ‘oh it was a free TV anyways I have another good one.’
Next the state government promises government employees on hike in their salary, so they are happily planning for their vacations and about their children’s college admission, even the gold rate is not going to worry them much.
As for the creamy layer, money is not an issue at all.
And the glamorous IT class also doesn’t worries about this issue; they have their own problems of job shifting, US visa problem, social partying, investing in shares etc
This may sound like just a cynical view of our society. But in truth it is not so.
Every one is happy about the slashed prices of air tickets, but not worried about the raise in food price! This sounds really odd to me.
I was recently visiting Calcutta, and was so shocked to see how the lifestyle was simple, easy and cost effective there compared to my city that’s Chennai. People there still use public transport and private vehicle charges are very nominal.
So who is responsible for this entire problem?
Many of us can humbly say that it is all due to our own mistakes, our selfishness- we the people are to be blamed.
Seriously are we the only ones to be blamed?
As one of our central minister says, are we eating more wheat rather than rice? Is that why the prices are going up?
Are we just going to have a good laugh at our crisis?
We do pay our taxes, we follow rules, we vote, we try to make everything right, we adjust, we work hard, we take responsibility, and we follow ethics…India's Inflation Crisis -Daily Life's Perspective
So are we the ones to be blamed for the price inflation?
What are the politicians and the government servants doing?
Instead of worrying about their vote bank and personal economy, aren’t they supposed to take care of these problems?
If we have to be blamed for all these issues,
Then what’s the point in electing a representative? Have we totally lost hope in democracy? But yes we are to be blamed, for not fighting for our privileges.
We are to be blamed for not forcing our politicians to do their duty.
By the way, I took back my dress material, saying to my friend ‘I will stitch this dress latter ok’

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1 Stars
Inflation is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services. In either case, it is measured as the percentage rate of change of a price index.[1]

Mainstream economists believe that high rates of inflation are caused by high rates of growth of the money supply.[2] Views on the factors that determine moderate rates of inflation are more varied: changes in inflation are sometimes attributed to fluctuations in real demand for goods and services or in available supplies (i.e. changes in scarcity), and sometimes to changes in the supply or demand for money. In the mid-twentieth century, two camps disagreed strongly on the main causes of inflation at moderate rates: the ”monetarists” argued that money supply dominated all other factors in determining inflation, while ”Keynesians” argued that real demand was often more important than changes in the money supply.

There are many measures of inflation. For example, different price in dices can be used to measure changes in prices that affect different people. Two widely known in dices for which inflation rates are reported in many countries are the Consumer Price Index (CPI), which measures consumer prices, and the GDP deflater, which measures price variations associated with domestic production of goods and services.
2 Stars
Gaurav
Banglore, India
The middle class and poor class are suffering from price hike, this is the cost of development. Our Finance Minister says India is developing so the price is bound to go up. Do we need such development where we will have no food to eat? A big NO to the FM..
1 Stars
Andy
Navi Mumbai, India
Yes, it happens, Chidambaram is right, India is not the single country which is facing it, other countries like China is also experiencing the same. The rate of inflation in China has crossed 12-year peaks of eight percent. The rates of wheat, rice, cooking oils, metals and other commodities are touching sky-high. Chidambaram has no magic stick in his hand by which he could restrict the price hike.
2 Stars
Bin
Meerut, India
@Andy, you have no idea what you are saying, Inflation in our country is much lower than several other developing countries but, let me tell you, the prices of commodity items are rising with double rate in comparison with China. The prices in India are increasing considerably faster than several developed countries also. There is something wrong in Indian economy and government should take immediate step to stop inflation rate.
1 Stars
Hemant
Varanasi, India
What the hell is this inflation? It comes and goes all of a sudden. Is inflation some kind of a plague or epidemic which hits country's economy without any warning and creates havoc among common people and it disappears mysteriously. I don't know it is a mystery or not but our dear P Chidambaram is trying to make it a mystery.
2 Stars
Ayushi
Calicut, India
The major question is that are we in need of such growth clubbed with price rise. The open market policies have definitely boosted the country's economy and tripled the economy's growth rate in past 20 years. But, if we talk about price rise, it gives some remembering of 1980s, when Indian economy was one the best and highly regulated economies in the world.
1 Stars
Development inevitably brings along inflation. Simply because of more disposable income. And a few global factors too. In my opinion, the only way to combat inflation to grow even more rapidly so that more people are able to afford basic necessities facilitated by increasing income levels. I know this is a vicious cycle, but then again, breakneck development will have it’s share of niggles. And please, we’ve had enough of government subsidies.
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