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Q.

Inflation has come down but cost of most of the essential commodities increased. How?

Tags: inflation, essential commodities
Asked by Mahadevan Subramaniapillai, 28 Jul '09 12:14 am
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Answers (14)

1.

In the states on the western region of India, there are heavy rains leading even to floods e.g. Gujarat whereas in the eastern region, the rain seems to have played hide and seek game and parts of Jarkhand and Bihar are completely dry. The farmers there could not even sow the seeds.
I feel, as usually happens, in such situations, there is panic sensing less production, hoarders are active and they seem to create artificial shortages also to make fast buck.. Mr. Sharad Pawar, our Union Agriculture Minister has announced some steps and I hope the prices of essential commodities which have and are still sky rocketing will be controlled and will then come down and stabilise. Civil Supplies Departments of the states and the Union Ministry will have to keep close watch and take necessary steps to make the essential commodities available, stop hoarding and control the prices.
Answered by Francisco, 28 Jul '09 12:30 am

 
  
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2.

The inflation rate which the govt declares on a day to day basis is infact a "Wholesale Price Index (WPI) and not the Consumer Price Index (CPI) which actually reveals the retail prices of the comodities. As per practice and to be more accountable to the "Aam Admi" of India, CPI should also be declared by the present govt but surely it will put the govt into an embarrassment. Also the Wholesale Price Index (WPI) is statistically manageable by not considering some of the items to bring down the wholesale price index to the minimum possible level.

The vast difference between WPI and CPI itself reveals that there is a vast money making business of "Hoarding" is going on on a very large scale, probably, with the connivance of the powerful political personalities.
Answered by Vijay Shanker, 28 Jul '09 03:44 pm

 
  
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3.

B'coz......
-Firstly,Inflation rate is calculated on Wholesale price Index & does not take into account Retail prices which r relevant to end-consumer like us.
-Secondly,INflation rate doesn't include inflation on Services, Rates r only for commodity inflation.
-Finally, INflation is reduced because money supply in economy has reduced but still aggregate supply is falling short of Aggregate demand...resulting in price rise.
-Finally, I hav doubts over govt. data.
Answered by a, 28 Jul '09 12:25 am

 
  
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4.

Inflation comes down-Inforlantion by Govt.This may be wrong too,But in fact, As you mentioned most of all commodiites cost gone high and high.
Answered by meera, 28 Jul '09 12:17 am

 
  
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5.

This s 1 way. (Hope U Watch Comedian Vadivel's Comedy like using this word)
The Cost of Commodities could be increased but not to be decreased.
Answered by BPL, 04 Sep '09 03:04 pm

 
  
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6.

This is magic show of Congress Rule
Answered by Harris Nagy, 29 Jul '09 04:49 am

 
  
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7.

Even the government may not be able to explain it
Answered by anil garg, 29 Jul '09 12:05 am

 
  
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8.

Inflation is related to price expensive cars and daily use articles
Answered by raj sharma, 28 Jul '09 11:40 pm

 
  
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9.

That is the beauty of Indian price index. On paper it gives a very rosy picture and in reality the prices of common man's daily use items shots up rapidly and pushing him to the walls.
Answered by Vishwanath V, 28 Jul '09 10:32 pm

 
  
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10.

The so called giant Retail Companies like Reliance, More (Aditya Birla) group and many more have cornered all the food items and releasing them according to their business interests keeping the prices of pulses and rice very high, beyond the reach of common man. In addition, interest rates on FDs are reduced by banks leaving senior citizens in lurch as they neither have the income or in a position to afford the high cost of food items.
Answered by M Shankar, 28 Jul '09 05:26 pm

 
  
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