Who says Inflation is 7 % ?

The latest issue of Business India has a cover story that talks about workers in Hero MotoCorp demanding hefty annual salary hikes that would translate to them earning about 1 Lac /month in next 3 years. I hope it happens. Corporate India, the rich  (the 42,000 people who officially earn more than 1 Crore / year) , the IT workers, Successful Businessmen & Traders  – get richer & richer, while the common man on the street struggles with his day to day life.

I do my neighborhood walk once in a while (Its more of an obstacle course these days with broken footpaths & cars parked all over) and it was interesting to see the increase in cost of a few items that we all tend to consume regularly.

Coconut water is healthy and is now available every 500 m in major Bangalore roads. A truck visits these footpath outlets twice a day and delivers stock. (Looks like there is s smart entrepreneur who has figured out a big business opportunity with no investment). For many years you could get a nourishing coconut drink for Rs 10, a few months back it became 12, had a fleeting stop at 15 and has now rested at Rs 20/- .  That’s a 100% hike in the last 12 months.

Every Sat morning after my visit to the temple I stop by at the Darshini or any other standing joint and have a cup of Coffee. I always carried coins for Rs 6/- so that there was no hassle of change. The price of Coffee went up from 6 – 8 – 12 in less than 6 months. Again a 100% hike.

I also visit Ballal Residency (Residency Road) frequently on my way back from the Gym. My normal order would be a Moosambi Juice, Idli Vada and a Coffee to top it up. Normally its about 80 Rs – yesterday when I gave the 100 rupee note the waiter pointed the bill and showed me the rate as Rs 180/- . Again a 100% + rise.

The truth finally sunk in when on my evening walk I stopped by at a Puchka seller (Gol Guppa) – something I do once in 6 months when temptation kills rational thoughts. A plate of 6 used to cost me 60 P many moons back when I was a kid, but for many years in Bangalore it was Rs 10, became Rs 12 and is now Rs 15/- . A 50% + Hike.

And finally the Sona Masuri I have been buying for Rs 38/kg for the last few suddenly shot up to Rs 51/Kg ( A 30 – 40% increase in a few months)

Government, RBI & Economic Survey data claim that WPI Inflation is now under control at 6 – 7%. (And I wonder how they calculate this). The inflation on the street is easily upwards of 15 – 20%.  And if we create an Index that consists of Vegetables, Fruits, Cereals, Petrol, and Transportation Costs – we may well see the rate of Inflation well above 25%.

Companies like Hero, Bajaj, Mico Bosch, Maruti Suzuki and many other manufacturing firms hire less than 50% of the staff on their rolls, rest are contractors and pay them very low salaries and hardly any perks. I have heard that a Diploma Mech Engg in a Pune manufacturing plant works 6 days a week, 12 hrs. shifts and earns Rs 7- 10,000/- month.  Labor Unions have become meek and even Hindi Cinemas no longer focus on the challenges of the poor but take us to magical lands of joy & prosperity. (Here is an opportunity for Abhsishek Bachan to come back in some of his father earlier avatars as the messiah of the poor)

Source : Trak.in

India is growing but we are a country where 650 M do not have basic sanitation facility and less than 10%  of our 15 M wage earners have an income of > 1 Lac / Year . I shudder the think how the common man earning 15 – 20 K / month manages his daily life.

The price of Onion is up by 80% and many a Govt has seen its fall when the price of Onion goes up drastically. This divide and the sense of helplessness amongst the common man  is fast going to accelerate the sense of anarchy that is spreading across the nation.

As Mr Modi says its time for a Government with Mission to come and fix the mess in the country while those who survive on Commission are shown their way out.

Tags: Inflation, Inflation in India, Tax Payers in India