P
resently the sea of Indian economy is negatively charged with intractable currents that are jeopardizing the political and economic scenario in the context of inflationary effects in the price waves. The much debated among economists, barraged with questions and criticisms by politicians who are not in power and highly romanticized and sensationalized by the media personnel is the term ‘Inflation’- truly the bone of contention which is rampaging the Indian economy.
So, what is this Inflation? Recently I overheard this conversation between two ladies at a bus stop in Bijapur. First lady exclaimed – ‘Mehengayi bahooth chad gayi hai, sab kuch mehengha hai aur sasthayi ke din guzar gaye hai’ (prices are soaring, everything is costly and the days of fair prices have passed away). The latter sighed deeply and replied – ‘Sahi bole aap, is mehengayi me hum kaise din nikale aur kaise ghar sambhale (you are right, how can we live at such costs and how to take care of the house). Well, most of us have similar understanding of inflation i.e. things cost more than they used to. In fact, this is quite closer to the definition that we find in the Oxford dictionary - a general rise in the price level of goods and services in a particular country over a period of time.
Inflation in India has tremendous impact especially in regard to the rising petroleum prices and food crises. This is not just India-specific but it’s a global phenomenon which is affecting every locality worldwide. Lately the inflation rate has made an uptrend at 11.98% on June 28 and who knows whether it’s heading towards a standstill or towards a hyperinflation. The Prime Minister of our country Mr.Manmohan Singh and the Finance Minister Mr.P.Chidambaram team have suggested that the inflation will continue to outpace till it reaches 13 percent. In the past too that is India’s fiscal 2002-03 witnessed increase in inflation as oil prices soared twice during the period and adversely affected the advancement in price rise. During this period there was even impact on the agri-products due to the drought which led to the proliferation in prices especially edible oils. But the efficient handling of supply management helped to dissipate this price hike.
However in this present burning scenario, the prices have hovered around $140 for an oil barrel. This creeping oil prices and even few other essential commodities are becoming exceedingly impossible to the poor and even to the so called middle class. These are the people who are at the end of the tether because due to inflation these would be spending twice as much to afford the same products. Being caught in the web of inflation these spend more as their income remains stagnant while their expenditures are increasing day by day vis-à-vis the rising prices of consumer goods. Thus they have to work still harder to satisfy their needs and to keep up their standard of living.
Inflation as stated previously is a global phenomenon and not India-specific. So there is no use in burning the effigies or by criticizing the UPA government for being unable to fight inflation. Even here, why have we failed to notice that sometimes price rise can be beneficial as for the human Psyche anything that is under priced or cheap can be over consumed and thus leading to misappropriate use of the commodity. Therefore price rise can control demand and lead to sagacious use.
Strictly speaking inflation occurs when there in an increase in governmental taxes and fees or things that cost businesses. It can also take place due to several reasons for example-when things become rare (demand increases and simultaneously prices too increases) or when there is an increase in interest rates, personal taxes, property taxes, sales taxes etc. Now the question arises if inflation continues to grow then how do we counterattack it? Can the government fight against it; if not then how do we tackle it. The answer is similar to what J.F.Kenedy said to the citizens of his state regarding the nation-“Let us not ask what the government can do to tackle inflation but what can we do to tackle inflation.”
First and foremost let us stop blaming the government which we all love to do instead let us take evasive actions regarding inflation right from our homes. Let us adopt few strategies to fight the enemy which is affecting our economic condition. Let us not cling to the monotony and to the drudgery of life instead discover our own innate abilities of being creative in keeping up with the rising prices.
Here below are revealed 7 great ways with which we can curb inflation:
- Be Eco-conscious – Go for a public transport or take a walk rather than using your car for short distances. In a long run it can save a lot of your cash and even petroleum for the future generation.
- Be Judicious – Get to your nearest market where you can buy for lower costs and avoid expensive food malls and bazaars (i.e. change the way you market).
- Be Choosy – Cut the fat out of your spending i.e. avoid unnecessary expenditures.
- Be Versatile - If possible try to keep an extra stream of income or a job running so as to keep up with the rising prices.
- Be Creative - Grow and cook your own food. This will keep you healthy as well as save you the service charges while eating out.
- Be Economic – Drive slower. It can save the fuel as well as minimize your expenses.
- Be Discrete - Cultivate discrete purchase of consumer goods and discourage the ‘pick & shop’ attitude.
By Bryan Francis Rego.
