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Q.

Household saving rate of an average employee in metros has come down by 45 per cent in last six years due to an exorbitant increase in prices of essential commodities, fuel and education, an Assocham survey Finds - How inflation to be contained ?

Tags: money, education, essential commodities
Asked by venkatesaldevarajan, 01 May '11 01:46 pm
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Answers (7)

1.

Primarily Inflation is directly related to the excess money supply poured due to the high black money. unless otherwise we control the black money inflation will rise alarmingly.
Secondly wide gap in the salary sector is also a cause for high inflation.There must be a mechanism to bridge this gap otherwise it is very difficult to contain inflation.
Answered by Josna, 01 May '11 08:56 pm

 
  
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2.

Inflation is growing at an alarming rate and the common man is the worst sufferer.The govt. employees do get an increase in their DA but the private sector does not even get that. The main reasn for growing inflation is the exorbitant spending by the govt.The taxpayers mon ey is mercilessly wasted by the govt. spending.The ministers and MP's etc . are competent enough to revise their salaries and allowances exorbitantly and no one can question how thegovt.money is being spent.The scams have also added much to the woes as lakhsof crores of rupees goes to the pockets of a few people and the common man is forced to cough up more for his day to day living.I sincerely wish that the honorable Supreme court may step in and keep a watch on the governm ent's spending toprotect the hard earned tax payers money and in turn control inflation.
Answered by HEMANT MEHTA, 01 May '11 01:53 pm

 
  
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3.

The erosion in he value of the rupee consequent on runaway inflation and attendant decline in the savings capacity of households has affected not only those living in the metros but also those in the villages also.It may sound strange to you and all, that the only section not affected by the inflation staring right on the face of all those fixed income group, is the unskilled labour class, atleast in my state. My state depends on the unskilled migrant labourers from TN, Orissa, West Bengal and Bihar as farm labourers etc. These people raise their daily wage once a fortnight by Rs.25= and many may find it difficult to believe when I say, the wages of the unskilled farm labourer in my state is Rs.450=as of now. against Rs.400=during the month of April. So there is no decline in their rate of savings atleast.
Inflation is a global phenomenon and it is very difficult to rein in simply because the reasons fuelling the inflationary trend may originate abroad and may be ...more
Answered by thampy chacko, 01 May '11 02:02 pm

 
  
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4.

This is the harsh reality. And it leads to corruption at the grass roots level. How can an employee in some govt office resist the temptation of taking a hundred or two to put up the file a few notches above in the queue. Or a policeman talking a hundred or two to let you off after catching riding a bike without helmet. One things leads to another. Dishonest and yet quite logical are the ways of economics!
Answered by QueSera Sera, 01 May '11 01:58 pm

 
  
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5.

Cant be done. as simple as that
Answered by rajan, 01 May '11 01:46 pm

 
  
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6.

The best way is to remove supply side constraints.The rise in prices of essential commodities r mostly due to their short supply .If supplies r increased ( either through encouraging production or through imports) prices will come down so also inflation rate.
Answered by Damodar Biswal, 01 May '11 08:56 pm

 
  
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