Comments on: Does inflation make sense to the common man?

By: eswaran iyer

eswaran iyer — Sat, 17 Oct 2009 13:23:33 +0000

The statistics behind the determination of the weekly inflation figure is hackneyed. Based on figures which are more than two decades old as a benchmark. Cannot fathom why the GOI doest not publish realist inflation figures, which include rice@ Rs.39/- per Kg and wheat at Rs.26/- per Kg.Toor dhall at over Rs.100/- per kg When will the Babus stop this white washing and become transparent. Obviously the price rice in real terms is due to the recent pay revision of the babus too.

By: Dara

Dara — Fri, 16 Oct 2009 13:37:40 +0000

The common man does not need the government to tell him about the rate of inflation. He is monitoring and actually experiencing it on a daily basis every time he touches his wallet.

All this data collection, which is generally hopelessly out of date anyway, is excellent stuff for armchair economists, Montek Singh Ahluwalia and TV anchors and panel discussions. It gives them something to discuss endlessly and to no purpose or conclusion other than to make themselves feel they are doing something constructive. Why grudge them their simple pleasures.

By: Toe Knee

Toe Knee — Fri, 16 Oct 2009 07:52:00 +0000

The simple solution would be to start using the Consumer Price Index. Yes, that does contain fewer items but more relevant ones. The CPI is not anywhere near zero and shows the true picture of the economy as it takes into account what the consumer buys at retail level, not the wholesale markets.

Many countries (even Pakistan) use the CPI as the official barometer for measuring inflation.

Am not sure when India will switch over to CPI since a high CPI will obviously not look good for the government at the centre. A separate ‘roti, kapda and makaan’ index would be better for the common man but certainly not good for those in power.