The ritual comes as a soothing effect to a disturbed and uncanny mind when it is announced diabolically that the Inflation has dropped to single digit and testing the 11 month low mark.
Time and again the Govt has tried to ward off the people’s wrath against the ever rising prices by implementing this fraud of measuring Inflation.
The Wholesale Price Index or the more popular abbreviation – (WPI) has been in use since a long time and is used primarily to measure the changes in the prices of goods on an average in the wholesale market.
The WPI has about 676 items on its list and includes manufactured articles lke machinery, transport equipment, base metal and alloys, Rubber and plastic Products, Chemicals, fuels, consumer durables like washing machines, TV’s, Dish-antenna’s and food products etc.
The articles in the prescribed list includes those Products which the Common man does not necessarily need them for everyday use or rather deferment in the usage/purchase won’t trigger any issues.
All the Products mentioned above are assigned weights and the average of all the items are taken into consideration to measure the relative impact on inflation.
Hence if the prices of manufactured goods tumble due to competition or adoption of new technology, availability of cheaper substitutes as raw materials etc the inflation rate comes down despite an adverse rise in food products as the weightage of the food products has a negligible impact on the weekly or fortnightly inflation rate.
The Govt tries to pat its own back by declaring/flashing a rigged inflation rate and is often heralded as an achievement in the media which in turn publishes it without reasoning or verifying the suppressed facts.
It’s time that the learned economists with Support from the Govt. take a more realistic measuring tool like the RPI- retail Price Index giving appropriate weightage to basic necessities like foodgrains, vegetables and edibles which can effectively churn out a near perfect way to measure inflation which nowadays has become the butt of ridicule due to utter failure to detect the abnormal price rise in the recent months.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment