The official inflation is reported to be at 10.91% where as the real
inflation faced by the people is easily not assessable.In any case it
should be 50% more than the official figures.Mainly those who goes to
market and purchases things out of their hard earned money can feel the
real impact of inflation. Those having black money,and those who earn
without any ceilings or many times more than the average earnings of
the lower middle class people also may not feel the pinch of inflation.
Those who are in power and whose expenses are debited to some third
party's account there is practically no inflation in the economy. The
real rate of interest is negative for the past few years and there is
no incentive or any money left to save with average middle class who
only save a lot.The FM can reduce interest rate to any extent and it
may not have any impact on savers as they have almost forgotten savings
habit.This can be proved if a research on the subject is ventured. Dr.T.V.Gopalakrishnan
( This comment appeared in Hindu Business Line in response to the report Small savings will fetch less interest from April)
Dr.T.V.Gopalakrishnan
( This comment appeared in Hindu Business Line in response to the report Small savings will fetch less interest from April)