You have very rightly pointed out the big problem being ignored by so called experts? The life of a middle class has been made more difficult by making him borrow more and more.And another important factor of concern is the increasing rate of crime,intolerance and greed for grabbing everything for self,forgetting MK Gandhi,s words that there is enough for everyone, but not for greed of everyone. Secondly, I will like to point out that today we are getting business in outsourcing because of lower cost which is rising steadly.We will loose this arbitrage sooner or later as other underdeveloped/asian countries are fast entering the field.So the policy makers needs to take immediate action to control prices of food and housing and must come out a clear policy on retailing which is further fuelling the commerical space resulting in high costs to consumers.
RE:Inflation down, but why are prices not dropping?
by R CHANDRAHAS on Jul 30, 2007 10:01 PM Permalink
You have not understood the concept of inflation. It is simple arithmetic. The Cost of a shirt was Rs. 100/- in the base year. Nest year it doubles to Rs. 200/-. Here the rate of increase of the prices ( related to inflation) is 100%. But what happens the very next year when the prices goes up from Rs. 200/- to Rs. 300/-. The rate of increase is only 50%. Thus even though there is a fall in the incremental rate ( inflation rate) the price is still increasing. Hope you got the maths behind it. Best of luck with the inflation. Regards, R.Chandrahas
