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.
RE:Hmm..
by Kaushik Das on Apr 09, 2008 05:05 PM Permalink
and this does not take into consideration the cascading effect that inflation has on prices. If food prices increase 10%, the working class has its task cut out. So, they increase their charges. Everything dependent on that icreases still.
