Inflation has not only burdened the common man but foxed economists and policy planners with its erratic movement. Whenever they predicted a downslide, it has jupmed or vice versa.
This has made our economists sound like a church choir, whose lyrics made little sense. All senior economists in the government felt that the wholesale price index-based inflation would continue to be in double digits till early 2009, but the rate of rising prices for the week ending November 1 dropped hurriedly to 8.98 per cent. This is what senior economists have had to say on inflation and how the rate of prices have risen or fallen: June 5, 2008: Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "It would be lower than the current level four months down... The direct effect of what has just been done (petroleum price hike) will probably be about 0.5%..." Inflation for the week ending June 7 shot up to 11.05 per cent from 8.75 per cent a week ago, within days of government increasing the prices of a litre of petrol and diesel by Rs 5 and Rs 3, respectively and cooking gas by Rs 50 per cylinder. August 13, 2008: Former chairman of Prime Minister's Economic Advisory Council C Rangarajan said, "For some more time inflation can increase. It could touch 13 per cent... But by December it will start declining and is likely to moderate to 8-9 per cent by March 2009." Inflation inched up to 12.82 per cent for the week ending August 16, but never touched 13 per cent. Chief Economic Advisor Arvind Virmani said on August 28 that inflation is likely to come down to 5-6 per cent over a period of 12 months. A few days later on September 1, Ahluwalia said that "what I am saying is that over the next 3 or 4 months it (inflation) will definitely come down." On November 11, Prime Minister Economic Advisory Panel Chairman Suresh Tendulkar said: "Inflation seems to be on the decline as international commodity prices are coming down and the domestic harvest is good. Early next year, inflation would be in single digits." "The inflation rate, however, will show upward movement next month on account of the base effect," Tendulkar had said. "I expect that due to base effect inflation is expected to shoot up in December before coming down to single digit", he had said. However, within days the inflation numbers plunged to 8.98 per cent for the seven-day period ending November 1. http://www.financialexpress.com/news/inflation-foxes-govt-economists-again/385314/0 ekamber --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
