Inflation
KAKALI DAS
If I tell you about inflation, slow credit growth, rupee depreciation, high interest rate and lower wages, perennial unemployment, etc., you will either faint out of anxiousness, or say that I am full of negativity, whatever. It is extremely hard to grasp economic indicators, and I struggle too. To explain that to the population is even harder.
And, you must know math to understand where economy is heading to. There is no other way around it. What if I tell you, that in the last few years, someone stole 30k-40k from your bank account if you had 1 lakh? You will be anxious, worried, wondering if someone knows your bank details. How it could happen is all that you would think!
Recently, retail inflation jumped to 8-year high in April. It was this high in 2014, during Manmohan Singh tenure, the last time. Earlier one could troll or abuse Manmohan Singh and deal with it. But what about now? How much poorer did we become amid rising inflation and declining employment? Let’s understand inflation in simple terms how it has impacted us!
Difference between prices in April 2014 and April 2022
These are the data collected from the Ministry of Statistics and Programme Implementation or MoSPI. Inflation is eating our savings, as you may know. Refined sunflower oil price almost doubled. Groundnut oil price increased by 90%. So, oil is expensive for the common mass. Mustard oil too saw an increment in price, by 95%. You may still use coconut oil for cooking whose price only rose by 30%.
Politicians may claim so and so, but ordinary people have to pay the price of LPG gas, whose price rose by 97% in 8 years. Transportation uses diesel, which increased by 93% in price since 2014. Rising cost of petrol and diesel leads to rise in prices of other items as well. Lemons, at a price sky high, increased 102%of that in 2014. What to do about it now? It’s more than double the rate. Lemon may be priced even higher in the market.
Here are how prices of pulses increased from 2014 to 2022 – Arhar daal (40%), Moong (29%), Masur (50%),Urat (61%).
Moving on to protein rich foods – Egg price increased by 42%;Milk price also rose about the same, 40%; Meat, Fish (deemed anti-national by many) price rose by 77% since 2014. At this rate, vegetarian population will automatically rise, won’t it? However, what is the point? Paneer is also expensive, and fruit prices aren’t the same anymore. The price of Mango rose by 92%, almost double in 8 years. These are just basic the necessities of common person, food and fuel.
There are other things like footwear, transport, personalcare, etc. which prices have increased by6.97%, highest in 95 months.
Inflation vs Your Salary
Retail inflation overall increased from 2014 to 2022 is 48%, this is as per the government data. So a product worth Rs100 in 2014, now costs Rs150. Now, in terms of your savings – salary tracking is not done yet, but one data point is available – per capita income. This is the average income of a person in the country.
The problem is – rich are getting richer manifold, and poor, poorer. So this number may not reflect the true picture. Still, for argument sage, in 2014, average income was 1574$, and in 2020-2021, it is 1935$ (less than Bangladesh). This is 23% increment, whereas inflation is 48% in the same time. So, if you are feeling poor, it is because you are poor, thanks to inflation! Salary has not caught up with inflation.
Moreover, there are rent, school fees, car EMI etc., so how much can you save anyway? Summing up, if your salary has not doubled in the last 8 years, then your savings may be zero. So, has your salary beaten inflation? The problem is, due to pandemic, salary has stagnated or declined. Hence, middle class became poor, and poor poorer still. Inflation has affected common people the most. But, Nirmala Sitharaman says, that inflation hurt the rich more than the poor in FY22! (slow claps)
A ‘Silent’ Inflation
There is a big difference between inflation in 2014 and inflation in 2022. At that time, inflation affected us so much that we boldly questioned the government; even celebrities made comments and films were made on it. Amitabh Bachchan jokingly tweeted, he wanted to burn his care, but now he is silent for some reason. Akshay Kumar was ready to travel by bicycle, because of high petrol price.
Now, he is busy deciding how to eat mango along with our PM. Baba Ramdev said petrol would be cheap, if there was no corruption, black money. These days his business empire keeps him busy. Juhi Chawla commented on difference between dollar and rupee.
Today, despite high inflation in America, rupee is depreciating against dollar. Where is Juhi now? Anupam Kher said, value of rupee declined so has value of human life. Today, the film on the pain of Kashmiri Pandits racked 300 crores plus, and the same actor is busy travelling in the foreign countries.
Amul butter used to make cartoons depicting high petrol price, and now it’s silent. At that time, journalism meant questioning the government, anchors talked on inflation, the nation wanted to know what was being done about it.
Today, when inflation is back, it matters to no one no more! Because, people now seem content by observing someone else undergoing pain. Nowadays, the distractions like bulldozer, loudspeaker, hizab, namaz, meat, love Jihad, Taj Mahal, Kutub Minar, etc. keeps them away from issues like hunger, inflation, unemployment, economic slowdown and many more. Politicians know this well, that is why they’re keeping people busy in this fire of diversion.
Note – This small article is to explain how inflation is hurting our savings and lifestyle. Compare your own current salary to 2014 and determine how inflation affects you. Remember, it was this inflation that forced previous government out of power and today hardly anyone cares.
17-05-2022 [ Headline Image: www.mapsofindia.com]
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