Has inflation gone out of hand?

Have you noticed how much prices have changed over the course of the last few years? Some item costs have doubled and even tripled. If you are not worried about it, you are making way too much money. Ask the common man and he will lament about his pathetic state. What is happening? How is the leadership dealing with it?

In the last decade the IT/outsourcing boom and the stock market boom has created a new class of rich middle class, who have too much money on hand .Their spending habits have caused a flood of new cash flow into the economy .This has caused all the price increases. There is lot more cash in the market relative to the goods available, so the increase in prices. What is the fate of the common man? His income has not increased and his purchasing power has reduced. Today there is a wider gap between the rich and the poor causing a divided society.

What are we doing about it? FM has focused his budget on controlling inflation but is it too late? What were we doing all these years? Is it time to raise interest rates? How about using higher taxes for the rich as an effective tool? Is the economy growing too fast that the common man is getting trampled?