ashutosh_73 wrote:
I thought, if rate increase in funds and inflation rates are moving parallelly, then even though you are getting more money in terms of absolute values, the things you can do with that money will remain constant.
Hi ashutosh_73,
That would be the case if the increase matched the rate of inflation. For example, if someone receives ₹100, and the rate of inflation (for example, the CPI) is 7%, they would need ₹107 the next year just to match the ₹100 they had last year. Option E tells us that the NHCP is receiving CPI + 2%, or ₹109 in our example. This is more than the ₹107 they needed for parity.
Of course, things would be different if the rate of inflation for a basket of healthcare/pharma products were more than the general rate of inflation.
Statistics : Posted by AjiteshArun • on 30 Mar 2020, 10:43 • Replies 17 • Views 17375
