500 is new 100 ?
Posted by Ashish Bavishi on November 3, 2012
3 years back I was the part of a family discussion regarding rapidly increasing prices. The point was – You take 100 Rupees to market and you come back with a very little purchase. Things have been extremely expensive.
3 days back again similar family discussion was going on with everyone having stressful faces. The point was – You take 500 Rupees to market and you come back with a very little purchase. Thing have been extremely extremely expensive.
After RP (Retail Price) analysis we realised domestic (consumed for day to day usage viz. Vegetables, milk, ration etc) items are increasing at almost 100% every 2 years. (Let not see Govt’s claims about only 10% of inflation based on WPI – Wholesale price index).
The reality is now 500 Rupees does not help you to buy similar items you were buying in 100 Rupees 3 years back.
Absolute dissimilarities between Paper Price Index and thorny reality.
I am just thinking how long it would be “1000 is new 100 (!)?” and how ready we should be to accept and tackle that ?