"Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair." -- Sam Ewing.
Inflation has hit a ten-month high of 7 per cent (week ended March 22) in India, breaching the Reserve Bank of India's target of 5 per cent. The Wholesale Price-based Index rose to 5.92 per cent for the week ended March 8 from 5.11 per cent in the previous week as food products turned expensive in line with the global trend.
Everyone is facing the brunt of rising prices. Prices of all essential commodities are rising not just in India but across the world due to a fall in supply. Inflation has spiralled all over the world. With India importing food items, it is only adding more woes to the people.
The Indian economy is also facing a slowdown. The markets have also shed huge gains -- March 25 was a sort on aanomaly -- taking a cue from global meltdown. Industrial production has slowed down, further decelerating the economy.
Economic growth slowed to 8.4 percent for the third quarter ended December 31, 2007, compared with 9.1 percent in the same period the previous year.
So how does this spectre of inflation affect you and me? Read on. . .
Text: Manu A B
Image: Activists from India's leftist parties shout anti-Congress-led United Progressive Alliance (UPA) government during a protest rally against inflation | Photograph: Raveendran/AFP/Getty Images
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