The media faithfully plays up the government statistics saying that inflation has touched a seven year low. What the media does not tell you in so many words is that this inflation number is of use only to equity analysts, economists and the likes. This has no reference to day to day living.
In day to day life, you will see inflation going up sharply. Food prices are rising at record levels (rice, sugar etc). The fall in petrol price or in price of steel and cement is of no relevance. Or if a "budget" hotel room rate (The Economic Times believes that a 3K to 8K per room night is budget) drops down. In fact on seeing the ET report about the range of the room rates for budget hotels, my son asked me whether 8K as 'budget' hotel rate means that it refers to the 'budget' of Bill Gates!!
The media is mindless and parrots views of vested interests.
Inflation in day to day living is going to shoot higher. And according to me, India is already in a recession. My count is that we will probably see a contraction in GDP by around five percent in the year 2009-10. I hope I am wrong, but street signs point to a deep and long lasting recession in India.