H C Singh

Likelihood of rise in Price India

Despite slowing down of recession, Wholesale Prices are likely to cross the targeted 5% by the end of year 2009 as inflation is moving up every month. Inflation has moved up during August of 2009 from 0.21% to 0.95%. This has been confirmed by the Planning Commission and Commerce Ministry. States have been asked to take strict action against hoarders of essential food products by invoking provisions of Essential commodities Act and the Prevention of Black Marketing of suppliers of Essential Commodities Act. But in case the rabi crop is affected too much because of drought in some states and shortfall of rain in many other states than the consumer prices of essential commodities are likely to go up beyond the estimates of Planning Commission and Commerce Ministry. If it so happens it will have, social, economic and political reactions all over the country. Inflation has been 11.89% as consumer index for industrial workers during July 2009. If rabi crop, is unexpectedly low the inflation for the year September to December might be 15% or close to 15%. This will be shocking for the government as well as people of India, particularly the industrial workers and 30% to 40% below party line.

September 17, 2009 - Posted by | India, Indian Economy | ,

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