In India the inflation problem has seen a regular growth from the past 5 years. Is it really the inflation rate that is rising in India or is it something else? Inflation is high but what is reason behind this constantly increasing rate of inflation. Is it not that our demands have increased? In other words are our changing lifestyles responsible for this? Is the population not a bigger issue?
The term inflation means when the prices of general items rise above the normal or routine level. If the rising trend continues the situation becomes high inflation. The rates at whichthe prices rise decide the rate of inflation.
One of the cabinet ministers of India once said, “Rising inflation rate indicates the growth of economy”. I don’t have the newspaper cutting or any other source of this statement but I agree that this may be the reason why the prices of things around us are showing a growing trend.
Inflation is closely related to the demand supply ratio that economists often talk about. The discussion here is not about that general demand supply ratio but it is about the changing lifestyles that consequently impact the rate of inflation.
It is about necessity, comfort and luxury. Necessity is about the basic needs i.e. food, shelter and clothes. Comfortmeans the improved necessities. Luxury means the things that are not necessarily required but provide extra comfort.
The increasing number of shopping malls, showrooms and the gathering of crowd there clearly indicate that life is not all about necessities these days but about comfort and luxury. Every range of product is selling good.
Crowd gathering on junk food stalls, food stalls, and the love of people in hotel/restaurant food takes lot of money out of the pockets of people simultaneously letting other people earn out of it.
Increasing number of vehicles per house also influence the supply of fuel. When the supply of fuel is affected it may mean the increased rate of transportation which in turn may result in higher prices or inflation.
Get on the road and there would be people all around especially in the metropolitan cities. People everywhere makes the reservations difficult, availability of tickets difficult, availability of shelter difficult and so on.
All these factors can make it difficult to understand what actually the problem in India is; inflation, changing lifestyle or the number of people i.e. population.