Daily Archives: July 2, 2009

Inflation Negative.

Inflation is not growing . It is showing negative trends. This is being propounded by all Indian Newspapers and newswires. I have my own doubts.

Today the government has announced a rise in petrol prices by 4Rs and diesel prices  by 2 Rs. This will give a jump in fares of public transport system. The common man will be affected. The trains will increase the cost of the tickets. Airlines will jack the  fare with the escaltion in fuel cost. They will  air lift the taxes.The freight despatches will become expensive. This will ultimately promote enhancement in the cost of provisions, vegetables and fruits. The manufacturing industry will be accruing heavy toll in the procurement of raw materials and outbound conveyance of finished goods. The circle is  painstakingly completed.

The price of  essential commodities like rice which was sold at 20 Rs / kilogram last year , is sold at 40 Rs  now. This price is for the uality rice. Simaltaneous hike is revealed in other food stuff also. Dhal is up by 20%. Tamarind by 50%. Sugar by 12%. coffee by 60%, Tea nearly40%. Vegetables are not left out. Tomatoes are range bound from 20 Rs -30 Rs.Potatoes remain constant. Carrot, beans, brinjal , cauliflower have shot up. Peas and capsicum are touching new highs. Onions and garlic have increased marginally.The fruits also reckon high growth in prices. Oranges and grapes are fetching high  money.Coconut is the only commodity that is facing inflation negative.

So much so . with the commodities sector ,which are raked by the rising . The precious metals shine so costly that the up rise is beyond comprehension. A gram of gold is about 1369Rs. Silver is no lesser than the yellow metal . It is about 23.90 Rs per gram..The land value is putting me in deep deliberation. A piece of land which was sold for 300.ooo Rs a few years  back is  1. 5 million now.  A  small time  land owner will automatically become a millionaire . What a phenomenal rise. All things make me swoon, render me dizzy. I need help both physically and financially to survive the test of times. But , I see no light.

Yet the government calls it out that there is down trend in inflation. The little economics ,I know , makes me count otherwise. How do the analysts reckon such a data? I am at a loss to understand the principles of economy. The rudiments of business never get into  my head. I feel ,there is something radically wrong in my upper chamber.God forbid!