The Inflation Scam
The Inflation Scam By: Rishita Arora The biggest buzz in the town lately has been the talk of ‘declining inflation’ , with India reportedly touching an all-time low rate of 0.25% which is barely a fraction of 1% . But this sparks an obvious question if inflation is so low, why does everything around us feel more expensive? From rising school fees to steeper cab fares, the reality of consumers paints a very different picture. So, is inflation actually down or is this the biggest economic illusion we’ve fallen for? The Actual Calculation All eyes widened when India’s CPI inflation rate was announced at just 0.25%, possibly the lowest ever recorded. However, this number doesn’t represent the true cost pressures faced by the average urban middle-class household. Over 55% of the Indian Population receives subsidized food grains through ration cards, and buys groceries for a price that is far below the government’s cost price. Likewise, 56% of the current enrollment in India ...