Inflation and What it Brings

The inflation rate in India as on September 2011 was reported to be 10.01%. This may not seem like a lot, however, if you consider the average rate of inflation in India is 7.99% with an all time high of 34.68% in 1974 and -11.31% in 1976. The outcome of the high inflation rate is evident in our daily lives with the prices of everything from basic necessities like vegetables to premium products soaring higher than ever. It literally seems like the prices of commodities increase by the day. The one case to best describe the ill effects of the high inflation is the petrol price, and the rapidly fast rate at which it’s rising.

The petrol price in Mumbai as of the 4th of November 2011 is Rs. 73.81 per liter. Now comes the shocking part, did you know that the petrol price on February 27th 2010 was Rs.51.68 per liter. That means in a span of around 20 months the price for one liter of petrol has increased by Rs.22.13. This marks an increase of almost 30% in little over one and a half years! There have been four price hikes in 2011 itself, which means these price hikes aren’t stopping anytime soon. Due to these circumstances, the first thing people look at when contemplating buying a car is the mileage. Even automobile manufacturing companies have changed their approach and manufacture at least one car whose main function is high mileage. The entire hatchback segment mainly comprises of cars which give higher mileage, are smaller in size and lighter in weight. This is in order to tackle the added hindrances of driving in excessive traffic and of course the lack of parking space in most cities. The one question on the minds of the Indian consumers today is, which car has the best mileage in India.

The Maruti ‘kitna deti hai’ TV commercials which most people must have seen, perfectly describes the average Indians mentality and concern when it comes to buying a new car, and who would blame them for that? With the surge in the petrol prices you are forced to think that way. Cars like the alto k10, Hyundai i10, maruti a-star and the newly introduced Hyundai eon all claim to give a mileage of 20+ kmpl if driven properly. This shows what an important factor mileage is when it comes to buying a car. It has become more of a deciding factor than looks, power or comfort.


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