Inflation in current scinario

Rising prices of consumables, wholesale price index with its double digit mark and the last year’s bad monsoon are the factors now worrying the Indian policy makers. Inflation may cross 10% mark shortly. Yes it will pose a challenge for RBI.
 
The increase in inflation is largely driven by the food prices and fuel prices which we call core inflation, here in the present economic scenario core inflation is growing at the rate of 5% year on year and it will keep on increasing if the prices of food and fuel are not brought under control.
 
Even some political experts believe that there is correlation between inflation and the present govt and its policy. During the BJP era when Atal ji was the prime minister of the country inflation was beautifully controlled by the deft economic policies of the govt. Now it’s a challenge for the ruling party to find suitable solutions to the problem of inflation. The worst hit people will be those the govt consider under the line of poverty and even people of moderate income will also be affected by the rise in inflation. Only the money makers will not be affected.
 
The time has come to redefine the poverty line and social security norms. Poverty and hunger should always be considered as a pathetic setback to human rights we all should agree on this. In our rising India as we are more focused toward the higher goals of industrialization, open trade and commerce, somehow the povery elevation schemes and various plans to uplift the deprived classes of the society are out of focus and interest. To support this statement lets go by the statistics which portray a grim picture of the current state of affairs: 1/3 of adults are undernourished in our country whereas and closely 50% of children are underweight with no exception to death due to hunger.
 
Targeted public distribution system (TPDS) seems to be failure as it can not address the dietary needs of people as subsidized sugar, wheat and rice can not alone meet the dietary needs of individuals. With the prices of vegetables, fruits sky rocketing these are out of scope for the poor. The situation is precarious as food-for-work programme reaches just 2.7% of rural households. Then we may ask what the level of accountability and transparency in the TPDS and other food, security, literacy and various other programmes formulated by the Govt.



By Dipti Prasad Padhi

 

By : | Category : Business and Economy| Date : January 02,2012

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