"The rise in
The wholesale price index (WPI) is at 6.58%, the highest reading since December 2004. There are frequent debates about whether the inflation rates indicate anything meaningful. For instance, food items have only 22% weight in the index, while it is close to 80-100% of the expenses for a third of our population. I would also like to see two different baskets: one for goods sold in air-conditioned stores and one for non-aircon stores. My guess is that anything sold in
RBI’s reluctant efforts to curb inflation by raising interest rates have been unsuccessful (though it says that it takes time). So what’s the solution? Here are my recommendations:
- Put curbs on the Bacchan family’s quest to cover all temples in
to pray for happy marital life for Aishwary-Abhishek. Believe me it puts a serious strain on agricultural goods. India
- Control effigy burning; once again too many effigies are burn nowadays. Every burnt effigy also means loss of the clothes used to wrap it, sets of shoes used to garland it and fuel
- Reality show contest for farmers; we have American (Pop) idol based shows for almost everyone: cricketers, singers, actors, quizzers. Let’s have one for farmers too, asking them to produce the cheapest Daal and Garlic.
- Rename foreign sounding tags by government decree. If we can rename
Bombayand Bangalore, we can surely rename Allen Solly to Ali Saleem and Park Avenueto Rajeev Chowk. Once the brand appeal goes, prices will fall too.
- Establish regulatory bodies like TRAI for transparent and fair pricing. A pre-paid card for mobile costs the same whether its Airtel or Hutch, sold in a mom-and-pop store or a supermarket; why should sweet corn and Dosa (Thosai) be any different?
- Fire people publishing such high inflation numbers. Argentina recently fired the longtime manager of the consumer price index at national statistics agency and then lowered inflation numbers by half.