The truth about inflation in India

The inflation has come down to below 5 % yet nobody seems to feel it in reality. For a common man in India, the prices are as high as they were a few months ago. Just how and why inflation has come down when nobody can experience it ?

Just a small and very significant reason for it.

The rise in prices of services is not included in calculating the Inflation !

Cost of using phone, electricity, the cost of visiting a doctor, the school fee of tuition – they all are part of services and consist a big part of monthly expenditure of a common man in India. Yet they are not included while calculating the inflation rate.

There is no yardstick with the Government to measure the rise in price of services. Only the wholesale prices of commodity items (such as pulses, rice, oil, Vegetable, Petrol etc are taken into account while calculating the inflation rate. That’s why our inflation rate appears so unreal.

And nobody seems to care because if they include the services, the real rate of inflation will emerge and it will be very uncomfortable for many.

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