A few years back when our father or any uncle told us that " Hamare zamane mein to ek rupye ka bees ser atta milta tha or do paise ka ek kilo doodh milta tha", we used to laugh away. Now thinking retrospectively we can say " Do saal pehle to Amul 500gm butter Rs80/- ka milta tha , jo aaj Rs112/- ka hai. Doodh tab Rs14/- lite milta tha jo aaj Rs28/- litre hai." Do we feel like laughing again on our own thinking now and can you imagine what will our future generation have to say?
If one were to argue in real terms, in actual real terms, the prices for most commodities have the same purchase parity when compared with the international price of gold/average income. Some raw materials may have increased disproportionately owing to the increased demand for them industrially, and some come down. Generally, if you discount the seasonal rise owing to demand and supply and the vice versa, you would find that perhaps goods and services are CHEAPER today than it was either during your grandfather's time or some, even 2 years ago.
What was the price of gold 2 years ago? What is it now? Maybe the salary has not caught up yet, but eventually, it will over a span of time.
Please also remember, that paying Rs ...more
Of course in real life, the level of income, demand and supply situation and the availability of a larger variety of consumer goods and inflation, that keeps rising with each generation, levels out every thing, in the long run. Though it pinches us, when we make short term comparisons.
the reason being..that with time,,,the world is also advancing,,,,economies are changing!!
value of rs..in indian context is falling!!!................and it will continue!!