Inflation all the way!

I went to the saloon last Sunday for a routine haircut and the guy charged me 20% more for the same hair cut compared to last month. Went in to buy some craft articles for my wife and the price had gone up 25% . I need not talk much about the vegetable process and souring auto fares ( minimum fare of Rs 30 charged for a short distance is a thing of the past now).

We often get to the see the price rise figures reported as inflation and it has been hovering around 10% for a while now.  The real retail impact is much more higher and 20-25% increase in essential/ vital spend can put any one's budget for a toss. if you are the lucky ones paying more than 50% of your salary as EMI, you may in for a squeeze with banks raising their lending rates.
The funniest part is if you get a 25% salary raise ( which sounds big stand alone), you can afford to maintain the same lifestyle / maintain your savings amount intact. Sorry state  for the folks who can't afford to keep up their earnings with inflation.

To tackle this we have only a limited options
1. Switch down your lifestyle. Reduce your consumption to must haves and avoid nice to have ( like a movie, eat out , etc) - This option is most difficult to do.
2. Increase your income ( may be a increment/job switch for salaried or revision of your sale price if you are a trader).
3. Ensure to start saving / stay invested in instruments that can give you inflation adjusted returns.

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