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Just wondering, were do you live in India? A 'decent' vegetarian meal (the kind I have everyday) costs Rs 25 from a restaurant. And possibly Rs 10-15 ($0.2) if

Just wondering, were do you live in India? A 'decent' vegetarian meal (the kind I have everyday) costs Rs 25 from a restaurant. And possibly Rs 10-15 ($0.2) if I cook myself.

copper 16y ago
His numbers are a bit on the high side (I'd probably spend that much for a meal in the food courts at some SEZ), but the basic point is valid: I believe we still see a >10% inflation rate here. For basic food commodities, the rate may be even higher.
- thomas11 16y ago
  The Times of India reported food inflation last week to be at 15%. That's clearly not sustainable as worker's wages rise significantly slower.
  - copper 16y ago
    The IMF predictions are pretty amusing[1] too, if you like that kind of thing. [1]: http://www.tradingeconomics.com/india/inflation-average-imf-data.html http://www.tradingeconomics.com/india/inflation-average-imf-...
  - eitally 16y ago
    Not in the IT sector. For the last several years we've seen 20-30% salary increases annually. I would argue it's more due to market conditions and the hiring practices of the big consultancies than inflation, but probably a third to half of that is an inflationary response.
    - thomas11 16y ago
      Sure, but the vast majority of Indians are not in the IT sector. These salary increases in IT are great for engineers, but they also work against India as an offshoring destination because of the rising costs.
      - eitally 16y ago
        Yes, exactly. It will be interesting to see what happens in the next 3-5yrs if salary inflation doesn't slow down or reverse and external investment is similarly reduced.
- silverlake 16y ago
  The Bank of India is raising rates to combat inflation, though they have been slow to adjust. Also, commodity prices are rising all over the world. Food is more expensive everywhere.
  - copper 16y ago
    Agreed. RBI's large response time is a good thing: it was one of the factors that allowed some insulation from the '08 crisis. It's not so much fun when it comes to deposit rates though :)
sundarurfriend 16y ago
I live in Bangalore and I've never been able to find a decent meal less than Rs.50 here. Even in my hometown (a relatively small town) a meal at a restaurant is Rs.30. If you don't mind, where do you live in India? Edit: To clarify, I'm not doubting your statement, especially since I've been hearing it frequently these days. I'm genuinely curious.
- train_robber 16y ago
  Presently in Trivandrum, Kerala. And I used to live in Bangalore till last March. You'll get a nice veg meal for Rs 30 even there - Kairali Restaurant, 80ft Road, Koramangala
  - sundarurfriend 16y ago
    Ok, thanks a lot for replying. I used to live near Kairali, but never tried it, will do.

Just wondering, were do you live in India? A 'decent' vegetarian meal (the kind I have everyday) costs Rs 25 from a restaurant. And possibly Rs 10-15 ($0.2) if I cook myself.

copper 16y ago

His numbers are a bit on the high side (I'd probably spend that much for a meal in the food courts at some SEZ), but the basic point is valid: I believe we still see a >10% inflation rate here. For basic food commodities, the rate may be even higher.

thomas11 16y ago
The Times of India reported food inflation last week to be at 15%. That's clearly not sustainable as worker's wages rise significantly slower.
- copper 16y ago
  The IMF predictions are pretty amusing[1] too, if you like that kind of thing. [1]: http://www.tradingeconomics.com/india/inflation-average-imf-data.html http://www.tradingeconomics.com/india/inflation-average-imf-...
- eitally 16y ago
  Not in the IT sector. For the last several years we've seen 20-30% salary increases annually. I would argue it's more due to market conditions and the hiring practices of the big consultancies than inflation, but probably a third to half of that is an inflationary response.
  - thomas11 16y ago
    Sure, but the vast majority of Indians are not in the IT sector. These salary increases in IT are great for engineers, but they also work against India as an offshoring destination because of the rising costs.
    - eitally 16y ago
      Yes, exactly. It will be interesting to see what happens in the next 3-5yrs if salary inflation doesn't slow down or reverse and external investment is similarly reduced.
silverlake 16y ago
The Bank of India is raising rates to combat inflation, though they have been slow to adjust. Also, commodity prices are rising all over the world. Food is more expensive everywhere.
- copper 16y ago
  Agreed. RBI's large response time is a good thing: it was one of the factors that allowed some insulation from the '08 crisis. It's not so much fun when it comes to deposit rates though :)

sundarurfriend 16y ago

I live in Bangalore and I've never been able to find a decent meal less than Rs.50 here. Even in my hometown (a relatively small town) a meal at a restaurant is Rs.30. If you don't mind, where do you live in India? Edit: To clarify, I'm not doubting your statement, especially since I've been hearing it frequently these days. I'm genuinely curious.

train_robber 16y ago
Presently in Trivandrum, Kerala. And I used to live in Bangalore till last March. You'll get a nice veg meal for Rs 30 even there - Kairali Restaurant, 80ft Road, Koramangala
- sundarurfriend 16y ago
  Ok, thanks a lot for replying. I used to live near Kairali, but never tried it, will do.