Just like a number of countries do. In South Africa, for example, they have estimated that the rate of inflation for the poor is about 3% higher than headline inflation. If that's the case here too, then the rate of inflation experienced by the weakest segments of our population has been, on average, 11.5% every year from July 2005 to December 2008. That's almost 6 times the British target if you were wondering.
So, Government as employer and the private sector employers have been shoplifting the salary compensation of poor workers, specially of those at the lower rung of the ladder for all the past years. Workers should press for calculation of inflation by income levels.
ReplyDeleteThey should definitely press for that as well as for the establishment of an inflation target. Bheenick mentioned that he intends to start discussion of such a target, as per article 5.2a of the BOM 2004 Act, with the Ministry of Finance given that year on year inflation has declined to single-digit numbers again.
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