The one thing effecting most in our 6.6 billion world today is Inflation – everyone enjoyed the IPL for a good old 49 days and the 24 day Euro 2008 tournament. Not to talk of the endless debate the world saw between Barack Obama and Hillary Clinton ( Boy, aren’t we happy at least this is over !) that seemed to have caught the world’s imagination ( with or without relevance ) for so many months .

GOI announced an 11.63% inflation on July 4,2008 – up by 38 basis points in one weeks time. And sure, most of us will think a bit more about our expense and start closing our wallet a wee bit. And expenses will take up a little more time for discussion on the dinner table. Believe me, it’s not a good feeling at all . Whatever happened to Incredible India and all the many unwanted euphoria we seemed to have built in the past 3 years?

But this is not the issue here – the issue here is larger. GOI using the obsolete method of Wholesale Price Index as Inflation measure that has 435 commodities that does not include many services ( insurance, telecommunication, education to name a few ) is the bigger aberration here. Most of many developed countries have used Consumer Price Index and some Retail Price Index to measure inflation – cost measured to the end users, as opposed to at manufacturing and distribution level. So is our Inflation 11.63% or more ? Ask anyone outside of the Government and they will say MORE!

On a lighter note, I have found another index that quite closely reflects Inflation – this is more prevalent in the US, but might soon find it’s way here too: its called the GSI -Garage sale Index. I have always noted how garage sale go up during high inflation times.

As for India, we will still do well and make more marks in this world – provided we don’t loose sight of our goals and don’t become too euphoric and arrogant.