Ad Here  
Air Asia India will set new benchmarks for budget travel Not just in-laws (and outlaws); they’ve renowned academics at the helm! Shipping woes of Chennai companies Breaththrough in malaria control Another Indian music maestro at the UN Small units prefers to remain small... GNS - 100: our first subscriber New IT products of Ramco in the pipeline… Plummeting profits of PSBs Banning booze... Tough task taking states together Infrastructure funding – lessons learnt The Jan Dhan bonanza A think tank for Chennai Tihar, Puzhal not different from Parappana Agrahara Cutting the nose to spite the face Tribute The balancing act West Bengal: mindless malignancy When small is no larger beautiful.. Preserving for the future Why land prices zoom in TN? Medical costs hit the roof... CII projects higher growth… The star of Spencers is no more Inflation: are we emulating Argentina and Brazil? Permanent secretariat for TN GIM Cement prices continue to rise… He continues the focus on social amelioration Come elections, come advertisements... The sea- saw battle continues... Delhi is distant… Put expensive assets created to use... There was flood of milk. Reason: no milk commissioner! Online not in line with brick and mortar businesses... Naidu will soon build a new Hyderabad Naidu’s return augurs well for Seemandhra Alexa – Talking Wikipedia to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Waning interest in public discussions… Fortune 500 review Cleaning Ganga – relocate tanneries and install electric crematoria Rs.1600 crore paper board plant of TNPL Tatas moving out of urea production... Russi Mody – a tribute Build close rapport with business leaders Mu Sigma – is no more IPL type auction for VCs? Fortune for Indian Airlines Paytm karo... Poor representation for Kerala and TN in Cabinet The nuclear option More heat than light Tax agriculture Funding the un-funded Convulsions in The Hindu EVM is tamper-proof Contrarian cousins Kulandai was a giant An informal presentation - analytical, forward locking... Where a state respects its litterateurs… For whom the bell tolls? The few handicaps... Welcome changes that testify to Jayalalithaa’s return to health A glass full of corruption An enemy’s enemy is a friend More Shakti to resource mobilisation... Towards speedy justice A C Muthiah – his munificent bequeaths to science Sri Lanka votes for change WTO Meet: resolved to meet again Revving up the manufacturing sector L&T: focus on infrastructure and more infrastructure… Quality silica from Neyveli SoA @ 80 Robber barons everywhere Wanted: a second airport for Chennai Maximising the micro pricing … The why of tax incentives Gay abandon in pricing A yen for wastage… Sweet news for TN sugar mills MHC should not return to its old indisciplined ways PC’s preference for professionals Measuring roof tops in terms of KW/MW TN accounts for the largest recruits by the IT sector Haul over the coal IAS invades NDDB... Remembering Indira Sivasailam... Where is Rajaji? Readers' Mail Vibrant Gujarat Shale gas and its shallow future Land reclamation from sea appears cheaper! More tributes to GR Telangana in top gear… Valli, they are more marginalised A friendly business group TELANGANA at last…BUT CSR and CMI: promise of another Srinivasan Ramanujan... Like Hinduism: many paths to reach God... All eyes on Sankara Nethralaya Solar thermal shines… Tribute – Manikam Ramaswami When the President was rendered homeless… Computation of GDP – conundrums continue Quality education through the PPP mode Recognition to role of NBFCs.... Muffled voices for merit… When Ratan Tata visited SRM Of course, Gujarat is vibrant Shanti and Sadhana through Music Discoms deserve better… How Air-India loses customs... Airlines in India: cost and space Whistle-Stop Tour of Raghuram Rajan For whom the MIDS bell tolls? Streamlining mandatory third party cover Secularism and anti-Hinduism Kinetic Karnataka The ‘Ayyo-yes’ is no more Fall in crude prices help in oil sector reform He saved millions from starvation... No Maha Koottani in TN... A more liberated TN… An inexplicable neglect Making ‘my Amaravati’... The rise and rise of KCP Delhi Chalo... Focus on quality of power - its only around 170-180V Road development slows down Delhi is distant Shaming of Tamils by Tamil farmers at Delhi Insurance companies bleeding, yet no decision on increasing FDI limit! Lalu’s envy, India’s pride Why this malaise in medical education? Colour-Chem’s colourful KRVS Tribute – UCAL Selvan… Padma Bhushan for A Ramakrishna TIAM turns a full cycle Nuclear power at the nucleus GM Technology at last! Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Revive development banks... Bihar – Nitish Kumar adopts the Lalu model Limit foreign borrowings to hi-tech, export potential projects... Tatas moving out of urea production... When online building permits work…. Modi and the lady Modi storms Silicon Valley Poor quality of university VCs A Grand Finale for SN’s MS centenary at the US… Multi-faceted Venkat Mersal magnified Scientists urged to take up farmer-oriented research Odisha: spectacular win by Naveen Patnaik The Ports’ Pasha expands into Tamil Nadu Sweeter prospects for sugar Don’t seem to feel the pulse… Things happen by accident and not by design... Editor's Notes The Swadeshi Trump EEC at the National Media Centre IPL - no surprise this scam More Shakthi to Das’ elbow TN-leverage strength of BHEL, NLC... Silver Years of Madras Musings A Grand Finale for SN’s MS centenary at the US… …and of a popular trade leader Solar, solar everywhere … Make standards certification mandatory... London, London Narayan The power-full Hindujas Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Fuel for thought Boy, can you beat these? Noble nonagenarians... Gas is the way forward Demise of a media baron... Kudos to NDTV... TN – agglomerate land holdings without alienating ownership CIPET hqrs to stay at Guindy – for the present? Diamond jubilee of Egmore Samskrt School Moily’s bold thrust Which side are you, Montek? Should we change the official year? Strengthen the base... Welcome GST No engine for this car CRS, a jewel among managers, is no more. Adapt Vajpayee dinner diplomacy Auto components surge… The Gulf aviation boom Five star activism stalls development activity Engineering seats go abegging Editor's Says S V Raju – a ‘good’ true liberal Eternal support for capitalisation of PS banks TGS- The king storyteller Align crops to agro climate endowments… China invests in India Protest masters... Adharma of opposition politics Increasing non co-operation of state leaders The ‘Jayanthi Tax.’ Music happens ONGC at KG Basin When TN politicians can emulate Kerala's Welcome thrust on trade in Modi’s foreign visits... S Ramanathan – a versatile musician, musicologist Rahman at CIC L&T- the specialty of special purpose vehicles When nations steal growth from one another… Roaring Ro-Ro facility Godspeed, Chief Minister JJ Building loyalty through the stomach F C Kohli - his concerns all embracing Marketing expert Balagopal is no more Reliance’s TV – 18 ready to launch Tamil News Channel This scant respect for Law Bihar elections - the Rajaji formula worked PPP mode for upgrading Corporation Hospitals B H Kothari - a tribute Delhi returns to BJP Liberal imports idling indigenous capacities Lesson from Chandrababu Naidu Tribute – M V Murugappan The brown list of Venkitaramanan Pharma – overdose of copying Excel Generators provide the vital back-up Dr C Rangarajan returns to Chennai Wise Presidents Polls and promises Parliament in paralysis... R Sridhar steps down as CEO of Shriram Capital Return to king coal for urea... Intellectual of rare qualities Welcome focus on core competence A rich pool of talent not utilised…. A professional at the helm of IRDA... No mega rail project for Tamil Nadu The rise and fall of Annamalai University A welcome initiative by the judiciary A proud Madrasi
Inflation: are we emulating Argentina and Brazil?

In just around a decade, real estate prices have zoomed: in  Chennai, the price of a flat in a multi storeyed building has increased from an average of around Rs 1250/sq.ft to Rs 12,000/sq.ft. Sadly, there is not much effort to look into the why of this and take corrective action.

I  am citing   a couple of instances related to common products – light fixtures and water taps – as examples of the gay abandon in jacking up prices unrelated to costs:

Chinese products dominate the light fixtures market. As in the case of toys and several other products, these seem to have driven out small-scale units from Delhi, Mumbai and elsewhere. The prices are arbitrary with no warranty and they are subjected to the whims and fancies of the trader. Five months ago, such a light fixture with the bulb and fuse system was offered for Rs 520 a piece. In November, this has been increased to Rs 720. The CFL bulb is priced at a whopping Rs 330. When such bulbs are claimed to have long life, a few of these last just a couple of hours and the consumer is not entitled for a free replacement.

Jaquar has earned a reputation for quality pipe fittings. Hardly, three months ago, such a fitting was sold for Rs 720. Today, the price has been jacked up to Rs 950. The material content in such a pipe is only a few grams of steel. There is no explanation for such steep increases effected by the day.  There is simultaneous increase in the price of every component of construction materials -  sand, cement and  steel...

Are we on the path of the Latin American countries, which are in the grip of uncontrolled inflation?

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236