Inflation is much more than what is being made out. My doubt is that the reported increase or decrease in WPI does not reflect the reality of prices in India. The WPI stands at 226.90 for week ending 12 April 2008. It simply means that compared to base year 1993-94 (WPI at 100), the prices have gone up by 2.269 times. It is simply unbelievable! Can any body in all of India say that overall increase in prices compared to 93-94 is only 2.269 times only? If the monthly expenditure of my family in 93-94 was Rs. 5000 then it means now I need to spend only Rs. 11,345 only?
