Inflated Inflation for common man!

Guys, you may remember that last time I wrote about problem with our inflation numbers. In that I clearly mentioned that first problem with our Indian Inflation system is, it doesn't represent what a common man like me and you pay for something due to various reasons. And those reasons I have mentioned also in that post.

Today, I am again posting about that but with some numbers & graphs, how a common is still paying high when headline inflation is almost halved from its peak levels. Just by looking at below graph you will come to know.



In graph you can see that, from August Inflation started coming down, from its peak levels 12.91%. But from same point onwards, index for CEREALS & PULSES started raising 6% & 5% odd levels to 9% & 13% odd levels. There might be various reasons for this...

First list of the WPI commodities is not properly updated as per the requirement. And of course its WPI, not CPI...

Second failure in administration. Because there might be possibility of hoarding in some parts since even though supply has increased compared to last year & demand dropped internationally. In addition to this, now government is facing the problem of TRUCK STRIKE from last 3-4 days. This will immediately affect the supply sides nearly 7-8 strikes where in strike is going.

And last but not the list there are various other possibilities like possible increase in domestic demand, higher cost of input and increment in the minimum support provided by central government.

BOTTOM - LNE:

Whatever may be the reasons for above mentioned problem, our measurement system must replicate the present situation of COMMON MAN rather than that of WHOLESALERS.