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INFLATION SOARS PRICE RISE BEYOND FOODGRAINS

inflation-3So far, it was food that was pushing up inflation rates in India. Now, manufactured goods such as chemicals and machinery, and a spike in sugar, are adding to the price fire. Inflation can touch 10% in March after shooting past the Reserve Bank of India’s forecast of 8.5% by March-end in January itself, economists said. There is hope, though: there is a chance the rise may peak out around June-July, said other experts. This week the ministry of commerce said the wholesale price index inflation touched 8.56% in January, driven by an across-the-board increase in prices. Any increase in the prices of petrol and diesel – something that has been talked about recently – will only push up inflation. But sources said the government is unlikely to make a move until after the Union Budget on February 26. What led to a further rise in January? The main pressure continues to come from food. Prices of fuel and manufactured products also contributed to its rise. The key to controlling inflation is the proper distribution of buffer stock of grains by the government. The state government should also ensure that there is no hoarding by anyone. The projection for February is inflation between 9% and 9.5%. Looks like the misery of the common man and the poor is only going to get worse. Bureau report – NMTV News.

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