Archive for the Management Category

Inflation measure @ India

In continuation with my recent blog about WPI as incorrect measure of Inflation, it seems Indian government is moving in right direction. There are definite steps being taken to reconsider Inflation measure in India. As per Mr. Pronab Sen (Chief Statistician - Central Statistical Organisation), new measures will be introduced around Q3, 2010 timeframe. Not only that, there will be four sub-indices i.e. national, urban, rural, state to define Inflation measure at appropriate levels. 

This will definitely bring sanity and purpose to Inflation as appropriate measure, which is currently grossly disconnected with WPI as measure. Good to know I know one topic in Economic well, at least thought process is aligned in right direction. Time to move forward and wait for Aug, 2010.

Source:  Inflation news  @ www.tradingIdeas.in

Infalation measure India


I was quite excited almost a month back, once Inflation rate @ India touched almost at 0.0 levels. This is in saving anticipation due to regular household & groceries expenses. To my dismay, I found costing of most of the stuff @ market is inversely proportional to Inflation rate. Is it something to do with our inflation measure which is based on WPI? I find it very ridiculous when Inflation is at zero level and commodity prices at market are still going north-side.

I feel CPI should is very appropriate measure of Inflation. There are two reasons to support that logic:

  • CPI impact is immediately visible to the retail consumers; unlike that of WPI which is in favor of produces
  • Key contributor for CPI is ‘Food, beverages & Tobacco’ i.e. 47% (almost half of the CPI index); whereas in case of manufactured products composition is at 63% level. Any inflationary impact of manufactured product should be visible in few months; whereas ‘Food, beverages and tobacco’ impact is evident straight-away

 

Hopefully someday I will understand the economics. With current trend, I love to say “I hate economists theory’; rather always fail to understand ;-)

Laptop price war

Wipro Infotech launched 20k laptop range. HP is offering Home theatre with its laptop. Time for price-war. Check this news  article. Not bad, if this impacts sale positively.