Inflation soaring high......

Inflation is a general rise in the prices of goods and services overtime.

As inflation increases the currency's value decreases. That is the purchasing power decreases. A commodity available for Rs. 100 today due to inflation might cost Rs. 105 or more tommorow.

These day's the rise in inflation is a very hot topic. It is expected that inflation could touch the double figure mark.


Probable reason's(what i feel) :

1> The amount of money available with people has increased. These day's people have got excess money to spend. But the fact is "Rich people have become richer, and poor has become still poorer".

2> The recent increase in petrol prices by the ARAB countries.


Probable hope :

1> A good monsoon this year could help controlling inflation.As our is a agriculture based country.

Lets see where it goes.

But what else could be the probable reason for inflation ?????????????????????????????

FUEL PRICES OVER THE ROOF TOP.....................

The new fuel prices in effect from midnight of 4th JUNE 2008 as the government says.

New fuel prices(Petrol / Diesel) :

DELHI :- 50.52 / 34.76

MUMBAI :- 55.51 / 39.08

KOLKATA :- 53.95 / 36.92

CHENNAI :- 54.61 / 37.40

LPG : up by Rs. 50 per cylinder

This time there has been a substantial increase in the price of fuel. Petrol going up by Rs. 5 per litre and diesel by Rs. 2 per litre .

Faced with surging crude oil prices , the government says it was left with no choice.The burden is now on the common man.It's a slap on the face of a common man.

Inflation up to 10% and still going high.

Now the question's that arise are:

Is such a high rise in fuel prices justified ??

Are consumers paying for the government's mismanagement ??

Where are we headed ??