As i see the headline Food inflation eases to 10.63% in BS, i wonder if inflation is really down and whether it means anything to the aam admi.
WPI inflation numbers are meaningless to the common man when vegetable prices which generally crash in winter are not only holding firm but are also up, the cost of milk is up and so is the cost of most fmcg goods which are facing dual heat with lower grammage and higher pricing.
The govt is also fuelling inflation flames with increased money supply, increased borrowing funding spending, the depreciating rupee and 15 to 20% increase in MSP of food grains.
In tow is the increase in electricity tariffs, the increase in lpg and diesel prices and the cascading effect of those increases, or more inflation through currency devaluation, if the prices don`t go up.
I had wondered some time ago and asked if India was facing stagflation… i most certainly feel we are if i take into account today`s situation.
So are we back in the bad old days of late 90s ?