oppn parties Inflation: No Sign Of Relief

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
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Inflation: No Sign Of Relief

By Ashwini Agarwal
First publised on 2022-01-14 06:08:17

Retail inflation in India, as measured by the consumer price index (CPI), was 5.6 percent in December 2021, the highest in six months. But as the wholesale price index had witnessed a record high of 14.2 per cent in November, this was bound to happen. Faced with rising input costs, manufacturers are passing on the burden to end consumers by raising product prices. Food inflation is breaking the back of the middle class consumers as prices of vegetables, cereals, edible oil, milk and bread have been upwardly revised many times in the last couple of months. For example, white bread was selling Rs 20 for a loaf of 400 gms in Kolkata a couple of months back. Now it is selling at Rs 28, after two price revisions of Rs 4 each. Similar increases have also been made to the price of milk. Prices of clothing, footwear and household goods and services are also elevated.

With the Omicron-led third wave in India excepted to infect a huge number of people and continue till February, a whole new set of restrictions will further disrupt supply chains and fuel inflation. Although the MPC of RBI had said the there was inflationary pressure and it predicted inflation to touch 5.7% before a dip, this figure is too close to the upper threshold of the RBI's inflation targeting threshold. But inflation in these troubled times has become a worldwide phenomenon with the US grappling with record inflation. In India, private consumption remains muted and is not expected to rise substantially in the last quarter. If inflation were to rise further and cross the inflation targeting threshold it would prompt the RBI, as part of its fiscal policy, to squeeze out cash from the economy in order to control it. That will crush demand further and add to the woes of the economy.