This with reference to the idea of pegging inflation at 4.2 per cent. It is perplexing how the inflation rate has been stable at 4-5 per cent, when the experience of most people has been to the contrary. Any middle-class family will vouch for the fact that living expenses are rising at much more than 5 per cent. Also for many, income has been affected due to falling interest rates and yields on savings.

The only explanation for this anomaly is that the basket considered for calculating inflation is not relevant. Inflation has different implications for the urban poor, the urban middle class, the rich and the semi-urban and rural classes. For a large country like ours, a certain level of regional or economic class-wise differentiation in price inflation figures is necessary.

Sunil K Kolangara

Bangalore

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