PRINCIPLE OF INFLATION
THE STORY OF 1966 to 1971
Dear Shri Harinathan, You will be very well understand the following facts
of my own experience as you are my batchmate
a) In 1966 I boarded the train to attend interview and to join B.E. with money of ₹ 400 to pay the first year annual fee of ₹ 300 plus Hostel deposit of ₹ 100
b) The remaining train journey expenses and the brief stay at Annamalai nagar was arranged by my father with relative and friend
c) My father expired in summer of 1967 and I managed the education expenses in a pitiable condition. I could not afford Hostel stay and
during 2nd, 3rd, 4th year I stayed outside living with single meal and paying ₹ 27 in a bramin mess.
d) In 1966 the hostel charges was around ₹ 45 to 50 inclusive of room rent and establishment charge of ₹ 18.
e) In 1971 the hostel charges were of the order of ₹ 75 to 100 inclusive of room rent and establishment charge of ₹ 20.
This if one considers the present day semester system the ₹ 400 mentioned above is equivalent to ₹150 per semester plus ₹ 100 Hostel advance
works out to ₹ 250 only.
PRINCIPLE OF INFLATION
THE STORY in 2001
a) In 2001 When my son joined IIT R he needed ₹ 26000 as first semester fee and ₹ 8000 as hostel advance.
So the money of ₹ 250 of 1966 is equivalent to ₹ 34000 in the year 2001
PRINCIPLE OF INFLATION
THE STORY in 2020
a) In 2019 These college fee is now standing at ₹ 125000
If there is no inflation the fee has to be stagnent at ₹ 350 but it is not.
with these facts the gradual inflation on education in 1666 to 1971 period is 10.75%
1966 to 2001 period is 10.16%
and
1966 to 2019 period it is 12.44%
I hope you will agree that there is inflation and it is gradual through out.
Before understanding my INFLAPRO calculation firstly you must be eager to know how to calculate the rate of inflation with your own perspective on different items. and the audit table there after