“Stagflation kicks in after 6 years” screamed a newspaper headline today.
The retail inflation has sharply risen to over five and a half years high of 7.35% in Dec from 5.54% in Nov, following a significant surge in food prices and hike in telecom tariffs. Retail inflation-officially called the consumer price index-has breached the RBI’s tolerance levels of 6% and could deny space for the central bank to slash interest rates to boost sagging economic growth. This is the highest retail inflation witnessed during Modi Ji’s Govt Since 2014. Retail inflation had spiked now because of higher food inflation which was at 14.22%. Food inflation shot up because vegetables became very costly, which means rise by 60% while pulses became 15% costlier.
With our Economy suffering turbulence in recent times and GDP stooping very low, what India currently needs is a no-holds-barred landmark Economic reform on the lines of 1991Economic liberalisation spearheaded by Narasimha Rao & Manmohan Singh. The Finance Ministry must not only focus on bringing down the fiscal deficit but also the common man’s out-of-pocket expenditure.
Unfortunately at a time when citizens are faced with huge unemployment crisis and skyrocketing prices of Onions, Milk, etc including other vegetables as result of severe slump in economy, our government passed CAA, followed by the decision of the Union Cabinet giving its approval to update NPR, which is supposed to be the first step towards countrywide NRC. As such moderates and liberals say that it’s a clear ploy to distract the people from the real economic problems plaguing the nation.Its for the people to draw inferences. Economic crisis, severe unemployment, agrarian crisis, etc are very important things to be attended to, on top priority.
The country is in dire need of organisations that will contribute to economic and scientific growth and help compete with other superpowers. It is for people to decide if taking measures regarding economic reforms or passing the immigration laws the urgent need of the nation.
The retail inflation has sharply risen to over five and a half years high of 7.35% in Dec from 5.54% in Nov, following a significant surge in food prices and hike in telecom tariffs. Retail inflation-officially called the consumer price index-has breached the RBI’s tolerance levels of 6% and could deny space for the central bank to slash interest rates to boost sagging economic growth. This is the highest retail inflation witnessed during Modi Ji’s Govt Since 2014. Retail inflation had spiked now because of higher food inflation which was at 14.22%. Food inflation shot up because vegetables became very costly, which means rise by 60% while pulses became 15% costlier.
With our Economy suffering turbulence in recent times and GDP stooping very low, what India currently needs is a no-holds-barred landmark Economic reform on the lines of 1991Economic liberalisation spearheaded by Narasimha Rao & Manmohan Singh. The Finance Ministry must not only focus on bringing down the fiscal deficit but also the common man’s out-of-pocket expenditure.
Unfortunately at a time when citizens are faced with huge unemployment crisis and skyrocketing prices of Onions, Milk, etc including other vegetables as result of severe slump in economy, our government passed CAA, followed by the decision of the Union Cabinet giving its approval to update NPR, which is supposed to be the first step towards countrywide NRC. As such moderates and liberals say that it’s a clear ploy to distract the people from the real economic problems plaguing the nation.Its for the people to draw inferences. Economic crisis, severe unemployment, agrarian crisis, etc are very important things to be attended to, on top priority.
The country is in dire need of organisations that will contribute to economic and scientific growth and help compete with other superpowers. It is for people to decide if taking measures regarding economic reforms or passing the immigration laws the urgent need of the nation.
