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Hmm..
by Kaushik Das on Apr 09, 2008 05:04 PM

you talk as if an inflation of 4-6% is LOW!!!
It isn't. It means that prices have INCREASED that much on an average.

Thus, if the inflation declines from 13% to 10%, it does not mean that prices have declined. It means prices have INCREASED by 10% OVER AND ABOVE THE PREVIOUS INCREASE of 13%. it basically means that if you pay 100 for something now, you will pay 113 for it the next year and 124.3 the next year. Thus, 13% REDUCED to 10% inflation means an increase of 24% over 2 years.

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