Inflations means paying more for goods than what you were paying earlier. Not only essential goods see a hike, non-essential items like cigarettes etc would also cost more. In other words inflation makes a hole in your pocket.
The rents have shot high, necessary commodities cost more than usual and thereby savings is affected.In direct words Inflation brings no gain to common man except for few hoarders and investors. Inflation enriches fewer while impoverishing more. They say a little bit of inflation is good for any economy so that business transaction takes place otherwise there would not be any growth in economy.
The growth rate has fallen as predicted by many research firms. For the service classes it is a shot on the arm. Whatever hike in salary they might have bargained is outdone by the hike in prices in essential items.
The cost for essential items should always be less but it is almost as high as luxury items or non-essential items. India still imports cereals, in such a situation the taxes levied on food items have been withdrawn and in case of other items the duties have been cut.
Politicians are saying that the real villan is the rise in global fuel prices. The increase in crude oil has led to the hike in transport costs and therefore food products cost more. Food products travel miles to reach markets. Vegetables, cereals etc. come from different states to flood markets and on its way it adds the road taxes and fuel costs. Then why not buy local products, which would be cheaper.
Crisis always leads to frustration and invention as well. Such is the instinct for survival that people bring drastic changes in their lifestyle to survive. A helpless government watches the rise and does things, which hardly benefit people. Savings come down and in an effort to make things better government can work hard in improving the safety nets for its citizens.
