The inflationary numbers crossed the psychological mark of 8 % last week. The pinch however is already felt by the public at large. There are many who are resorting to cost cutting and realigning their family budgets to fight the inflation. The worst hit is the pensioners who have a fixed income flow. The rising inflation is adversely impacting the middle class as at a time when the loan installments are turning out to be a fixed charge on income the rising cost of living is a real dampener.
As we work out the possible price hike and other measures to compensate the oil marketing companies, the holes in the pocket of the almighty government are more than visible. Looking at the situation the government is undergoing the plight of the general public can be thought about. The forthcoming elections in the center and four states are leaving less with the government to play with. The catch 22 situation is something the government is experiencing. The pressure from the rising international commodity prices is yet not easing.
As the government including the prime minister has identified this international connection as the chief cause behind the domestic price rise.
However keeping in mind the forthcoming elections there is an acute need to control the inflation. The price control measures were expected to deliver by the end of May, however there is little delivery. The proposal to fix the food prices by a consortium of India and China is an outcome of the heating ground both of them are standing on. Both of them are the major consumers of food grains and are seen as the chief contributors to the price rise of global commodities. The Chinese government is appearing the exam called hosting Olympics that too after an all shattering earthquake. Simply put the India and China - chindia- are at a crossroads where both of them have to understand the reality that they can’t change their positions on the world map and in the global economics. It makes sense to accept the reality and resort to cooption - completion with co-operation if not simply co-operation. |
