Giving up any hope of controlling the price-rise, the Delhi government has come out with a new make-believe theory : the situation is not that bad and the inflation is not really as high as it is made out to be.
CM Sheila Dikshit said inflation, as far as aam aadmi’s daily consumer durables are concerned, comes to just 6.14 per cent against the overall 11.05 per cent.
Experts, however, differ on the “truth”. They say that the actual price spiral is much more than what the government projects.
D K Joshi, principal economist at credit rating agency Crisil, said inflation of around 11 per cent doesn’t reflect the true picture as calculation of price index doesn’t take into account services sectors such as health and education. It considers jsut the manufacturing cost.
School fees have increased by over 15 per cent, house rent has jumped up by up to 30 per cent, eating out now costs nearly 40 per cent more, he says. Even doctors’ fee have jumped by 40 to 70 per cent.
According to Joshi, the cascading effect of price rise will escalate prices of several items. But, CM apparently does not consider these factors. she said that inflation in pulses is 1.5 per cent. for grain the rate is 6.1 per cent; for fruits and vegetables the number is 6.4 per cent and sugar and milk, it is 5.2 per cent and 8.1 per cent respectively, she said.
She also pointed out that there has been a decrease in the retail prices of Urad Dal (Rs 8 per kg), potato (Rs 4 per kg) and tomato (Rs 6 per kg), while the retail price of onion, brinjal and lady finger remained the same. when compared with the prices a year ago.
Ashok Desai, another economist, said that is illogical to take out a few items from the price list as say inflation is far less.
We guess with election knocking at the doorstep, CM is worries that inflation will fare a big role in voters’ decision making. So prehaps our CM thinks this just might reassure the Delhiites. Only, we are not sure they’d get taken in.
What do you think of the remark? Tell us…
4 Comments
June 24, 2008 at 10:58 am
Inflation is a global problem at this point of time. Does it really matter if it is 6.14% or 16%? Numbers and figures are just estimates and do not give you ground reality. If you just need the numbers, why not consider falling mobile phone handset prices or McDonalds Happy Price Menu or movie tickets (Morning shows at just Rs.50)? That will give you even reduced inflation percentage!
The point is, consider some areas and don’t consider others, you can always play with numbers this way! But that wont help the pockets of Delhiites!
Even if there is zero inflation, a government needs to get prices lower and lower. I am waiting for the time when we stop the inflation percentage hue and cry, and begin taking steps to control price rise.
I beleive it is not just the government but also the public that may help! The 3 ‘R’s are most relevant in order to do so:
1.’R'euse
2.’R'educe
3.’R'ecycle
June 24, 2008 at 3:56 pm
What can I think of the CM’s remarks?
She stopped shocking or surprising people a long time back since such statements showing a total lack of understanding of the real problems or disowning responsibility for finding solutions have come with unfailing regularity during her long tenure. Afterall, till the next elections are held, she can afford to take us for granted …isn’t it. As far as she is concerned, she has already converted Delhi in to the best Metro in the world.
Still thanks to her, I have now learnt that living means urad daal, potato, tomato, onion, brinjal and ladyfinger only. What a fool have I been, cribbing about the cost of so many other things I thought were necessary to live like a decent human being.
Whatever you say, the fact is…
Nazar jidhar bhi uthao udhar andhera hai…
Ghazab ki roshni hai ye ajab savera hai.
Anil Bhatnagar
June 25, 2008 at 10:25 am
it seems that our honourable cm shiela dikshit has not got a taste of the problems which r being suffered by the common man through this damn inflation which is only 6.14% in the outlook of shiela ji.Anyway these have never cooperated with the public andwill never do so b’coz that is not there cup of tea.the common man is being suppressed by the inflation and the authorities are the mute witnesses of the selfless state of the city.
June 26, 2008 at 7:41 am
Delhi doesn’t care anyways about the inflation.. it is consuming costlier liquor. ( This is a story that was in Metro Now).
At the cost of sounding patronizing to the government, I have to ask one think to all those are angry at the rising cost of everything… Is is all governments fault that the prices of the bare essentials are also touching sky high? Have we as citizens even sat down once and thought about what is the reason begind this inflation? It might be the impending elections, the opposition party hoarding the commodities so that the next elections go in their favour. Or it may be the fact that the oil crisis is truely there. We are cribbing on the fuel price hike, but we will not do our part in curbing the crisis and using the public transport. Now, you would very cleverly say that the public transport is as good as the government itself- in short useless. Temme, is it the government officials or the normal people like you and me who travel in the public transport? Its us. And if we do not make an effort to make sure that our public transport is the way we like, we will not get it. Coz, what the government will do is to make new laws and we are great in flouting those too. Use and proper use of the public transport will reduce the traffic chaos, give the government an incentive to actually work for better public transport. Delhi Metro is an example, where delhites have proven that we love and take pride in our city. Similarly, the buses also form a part of the network of public transport…. Do your bit also…I do it. I do not litter the buses and also resist anyone smoking in the private bus. I am regular citizen of Delhi and travel alot by buses… I have a car too… but then I believe in saving for the rainy day…also believe in saving the fuel for the coming generation so that there is a better world out there.