Inflation has been falling steeply since the agenda of Lok Sabha election took a momentum. It seems to be all election gimmick to satisfy/ justify (God knows whom) and to spread a feel good factor across the country and capitalize on the sentiments.
Prediction of Inflation (magical figure indicating a fall of inflation) become easier and it became so easy that every common man was in a position to predict the figures for the upcoming Thursday without having any knowledge of pricing and economics. Thanks for the knowledge wave created among the Indians now every Indian seems to be aware of the Term.
The biggest loop hole in calculating inflation in India is that it is calculated on the price of commodities based on whole sale price and there are lot of commodities that are not in purchase kitty of a common man still are included in deriving Inflation. This is an orthodox methodology and should be abandoned. Except us none of the developing countries use WPI
Inflation should be determined by the retail price index and only regular commodities like vegetables, soap, detergents, toothpaste/powder, cotton etc etc should be included.
With retail pricing moving towards north, common man struggling for Roti aur kapda (Forget makan) where are we heading.
