RBI loses battle against inflation as prices and money supply skyrocket

While the economy is already struggling to recover, the prices of most basic commodities continue to rise, including petroleum products, scheduled drugs and those for routine household consumption such as vegetables, fish. and meat, added to the pain of the common man.

In fact, in that month alone, the prices of perishable agricultural products have risen 20 to 100 percent from a month ago. Overall, wholesale price inflation hit an 11-year record high of 10.5% in April, as prices for fuel, manufactured goods, minerals and several food items soared . Prices for manufactured goods rose nine percent last month. While buyers in the market are on the decline, supplies appear to have fallen further to make products more expensive. This is a special situation.

Once again, unemployment has risen sharply. This is even more true for contract workers, including white collar workers, day laborers and those in unregulated jobs.

The latest report from the Center for Monitoring Indian Economy (CMIE) released last week showed how unemployment in rural areas, towns and cities across the country rose sharply from 6.82% on April 28, 2021 to 14, 45% on May 16. highest growth in the last 50 weeks. Closures and restrictions in various states are mainly responsible for the rise in unemployment this year, according to CMIE.

Unfortunately, the government has virtually no plan to stop the deteriorating economic trend. With an extremely low health budget, the government does not seem quite capable of reducing the pain and fear of the populations following the new wave of Covid-19 of the last three months. The government hopes that the crisis will end by the second half (October-March) of the fiscal year and that the economic situation will automatically improve.

(IPA Service)

Views are personal

About the author