Thread: Inflation rate lowest in 30 years

Yes u heard it right....on paper it says 0.13%. in actual, it must be something 13%(wild guess). i mean literally, nothing has changed for prices. in fact they are rising like never before. I normally do all all the basic shopping for daily needs in my home. I never seen anything became cheap in last few months. I mean WTF, what kind of pleasure these so called economist get in manipulating nos on paper. Everyone know the nos are fake but these ppl are coming repeatedly with same no. This is height of foolishness. This thing really pisses me off. When these ppl gonna accept the reality.

Logik

Source: http://www.thehindubusinessline.com/...1250130700.htm

Originally Posted by Logik

Yes u heard it right....on paper it says 0.13%. in actual, it must be something 13%(wild guess). i mean literally, nothing changed for prices. in fact they are rising like never before. I normally do all all the basic shopping for daily needs. I never seen anything became cheap in last few months. I mean WTF, what kind of pleasure these so called economist get in manipulating nos on paper. Everyone know the nos are fake but these ppl are coming repeatedly with same no. This is height of foolishness. This thing really pisses me off. When these ppl gonna accept the reality.

Logik

very true...I think there is a big time match fixing going on with the rate of inflation.

I mean the price of rice at 27Rs a Kg...how can the poor of our country survive... And they still want kangress at the centre...

The inflation rate is YoY (Year over Year). It simply means that current prices are rising at 0.13% over the last year (Oh Yeah! Reality is different). To see prices moving south, the inflation rate needs to become negative.

The governments likes to alter figures suitably to show things in good light. But note that low inflation rate is not good for the economy. This means that people are not willing to spend. When people do not spend, the demand decreases, production lessens, money disappears from the market and economy slows down. That is ... when the inflation rate really reflects the reality.

To have a good economic growth, an inflation rate of 4% is good.

BTW ...
"Kangress" or anyone - things will not be much different.

I bet if we continue with same rate of fall, then we may see deflation i.e. -ve inflation rate means u can imagine like the price of rice at 27Rs will become, 2.70 per kg ......but don't dream thats never gonna happen.

@ kix
u are all talking theory man.....same **** the economist keep saying like demand supply etc. but anyone ever thought these frequent gyrations (from slow to booming economics) are total side effects of open market system? I think these kinds of things are more common in such open economy. so whatever you say like these nos are ideal for good eco, but in the end your gonna get shocks frequently.

Originally Posted by Logik

I bet if we continue with same rate of fall, then we may see deflation i.e. -ve inflation rate means u can imagine like the price of rice at 27Rs will become, 2.70 per kg ......but don't dream thats never gonna happen.

We already have it @ Rs 2 / kg....

As I said, negative inflatio, i.e., deflation, is not welcome. It cripples the economy.

An ordinary man would like to see Rice at Rs. 3/kg but continue to earn Rs. 10,000 pm as he is earning today. Alas, this is not possible. When the things start crumbling down, it will be an avalanche effect.

Originally Posted by newprouser

We already have it @ Rs 2 / kg....

That is government subsidy. Someone is paying for that.

Originally Posted by just4kix

That is government subsidy. Someone is paying for that.

yes. We all are paying, by way of taxes.
Although, even Govt. is not paying fully and asking its PSUs to borrow from the market to run its subsidy schemes, an effective way of deferring the subsidy to a later date, and possibly to a later Govt.

A Zero or near zero inflation is the definite sign of recessionary forces at work. And we all are experiencing the effects of recession, in one way or other. ask Puchu or some of our other members who are experiencing the impact first hand.

Inflation turns negative, some banks to cut interest rates - India Business - Business - The Times of India

lol......here started the deflation

gotcha..

Originally Posted by just4kix

"Kangress" or anyone - things will not be much different.

Oh yes it will. Our Agricultural minister had started the futures trading in essential commodities like rice, wheat, sugar etc. It is because of the speculators in the MCDEX the prices of all grains have reason dramatically.

So yes the Kangress does have a hand in this. :32:

wheat and paddy/rice futures were stopped almost 2 years back and has been just reopened.

^ even more bad news...I still remember during the NDA govt the country had 1000s of tonnes of food grains in the storages, now we face a situation where we may have to import wheat.

Also the govt has upped the base support price of Wheat and rice to favour their vote bank - the farmers.

^
not necessarily.
now there is a problem of plenty in the foodgrains.
so it can actually push the prices down.

i dont know whateva this means...

govt is stable and they should work thats all..

Originally Posted by panchabhut

^
not necessarily.
now there is a problem of plenty in the foodgrains.
so it can actually push the prices down.

not possible unless the govt reduces the support price, which I don't see it happening.

hey guys common don't blame Mr. Agriculture minister...i mean he have lots of things like BCCI, ICC, IPL to run. give him some break

:lol:

Originally Posted by Logik

hey guys common don't blame Mr. Agriculture minister...i mean he have lots of things like BCCI, ICC, IPL to run. give him some break

:lol: ...tell that too our middle class...