Inflation in India is a affecting real estate

The Finance Ministry is having a hard time fighting with Inflation and they are making constant efforts to curb this issue. In India inflation not only affects food and other household component but its affect can also be seen in the real estate sector. It has overheated the labour market and realty sector to a great extent. Ministers and other government bodies have failed to fulfil their unrealistic promises in coping up this serious concern of inflation even the public distribution system has collapsed. Public has lost faith in the government. The interest rates have also increased because of inflation. The economist of India does not have any clear answer for this serious issue.

In India the inflation rate in economy is calculated using the wholesale price index. In developed countries Consumer price index is used in place of wholesale price index. CPI statically records the average price of goods and services that are purchased by the consumers. This provides a broader prospective for measuring the rate of inflation as it tracks goods and services of the consumer in an organised measure. In India CPI cannot be used as it would be difficult to keep a track of reporting numbers. The failure of WPI is the main reason for huge increase in prices.