Inspite of the recession in developed countries last year India achieved a growth of around 8% and is forecast to grow by more than 7% next fiscal. Property prices continue to be in the stratosphere. Apparently an apartment on the 100th floor at the Burj Khalifa Building in Dubai is priced at Rs. 38000 per sq. ft. but apartments in Vasant Vihar in Delhi are Rs. 45000 per sq. ft. while in Nariman Point, Mumbai rates vary between Rs. 90000 to 100000 per sq. ft. Food inflation is still around 20% and prices of everyday items keep going up. The other way of looking at it is that the Indian rupee is buying much less today than it did a year ago which means that the rupee has devalued. Indeed this used to be the story in the past when the rupee kept losing value very year. In 1990 the rupee was 15 to the American dollar dropping to around 50 to the dollar last year. Today it is 45.799 to the dollar. So if the rupee is buying ever less how is its value going up? True, the dollar has lost value against major currencies but inflation in the US is probably less than 2% so it still has some buying power. Perhaps economists will be able to explain how this miracle has come about.