Current Inflation rate is 0.44%. Does it make any sense for a common man? Nothing seems to be happening in commodity price . WPI (Wholesale Price Index) is the one which is being used by India to calculate the Inflation rate. But many other countries uses CPI (Consumer Price Index) to calculate the same.
Chief statistician Pronab Sen, who was the first to predict that inflation will enter the negative territory(Deflation) in April, said that even when WPI dips into negative territory, retail inflation will stay at 6-7% levels. This clearly indicates that the Inflation rate which is being released by
the government is just a statistical data and no impact on the common man.
The government should seriously think about moving to CPI based Inflation, so that it will paint the true picture of our economy. Falling the Inflation Rate from 12% to 0.44% is not a normal thing to happen and looks like it is a desparate effort from the government during the polling session to influence the urban voters.
But the Government must understand that the common man wants the commodity prices to go down in this crisis period NOT just the Inflation Rate. If it does not happen, the Inflation Rate has NO meaning and who cares about the Inflation Rate at all !!!
