Friday, June 19, 2009

Negetive Inflation!!! :-o

When I opened the News paper today morning I was shocked by reading the headline on the cover page. It reads "India facing Negative Inflation after 30 years". Now WTH is this?? Though I totally understand the concept of Inflation which means the percentage difference between the rise in price of any commodity over a period of time but for a layman Inflation basically means – "Mahangai suchkank" or "Expense index" i.e. how much he can now buy with the same money....In last one year or so rates of every possible commodity has shoot up like anything. To be very particular if we consider the prices of edibles only we can see the huge difference....they have gone up by up to an extent of 50%. I will just quote the price of some pulses....if I remember correctly I kg of pulse cost me some 40 odd Rs one year back and now the same thing I get at around what the hell is this. And they are saying we are witnessing DEFLATION.

I don’t want to get in to the technical only concern is - are these facts and figures which are communicated to US are really true?? I have a big doubt on this!!!!!

P.S. – I am not raising any finger against the credibility of our government, but this is the obvious reaction which came to my mind after reading this Deflation term.

P.P.S – (not on the same topic) Yesterday Federer posted his photograph in new Wimbledon stadium. And it looked awesome. Gosh!!! Don’t I love Wimbledon? :)


  1. Yes, Its true the infaltion is negative. From the layman's point of view, they only think about the commodities of their use which is measured by CPI(Consumer Price Index), which is obviously more in percentage terms. Inflation which is defined as negative is based on WPI(Wholesale Price Index) which includes lot of things like Real Estate, Other production sectors. During last year due to global slowdown, these commodities has come down. So it is obvious to have it negative when all are included.

  2. Dude...I have already mentioned, I didn't wanted to get into any technical stuff. I was talking from a normal person's perspective. Normal...which I am :)

    P.S. even I am well aware of these technical fundas...and to tell you they all SUCKS :P