The effect of inflation is no longer limited to ration only. The rising prices of vegetables have also spoiled the kitchen budget of common people. The prices of ginger, garlic and onion as well as many green and everyday vegetables have increased. With the festive season approaching, people fear that prices may increase further in the coming days due to increase in demand.
Talking to Aaj Tak, a vegetable seller said that almost all the vegetables used in daily life have become expensive. According to him, OnionThere has been a significant increase in the prices of ginger and garlic. Tomato, which was earlier being sold at around Rs 20 per kg, has now reached Rs 40 per kg. At the same time, the price of onion has increased from around Rs 30 per kg to Rs 80 per kg.
The effect of rising prices is also visible on customers’ purchases. According to the vegetable seller, customers now question the prices and are buying vegetables according to their needs and budget.
Kitchen budget completely affected
A female customer said that inflation has completely affected her kitchen budget. According to him, apart from ration and vegetables, the prices of daily essential items like milk and curd have also increased. He said that inflation is affecting the middle class and service class the most. It has become even more difficult for poor families to run their household amid rising prices. The woman also raised the question that when common people pay so much tax, then why do they not get the necessary facilities accordingly.
Pressure on prices increases due to West Bengal crisis
Regarding inflation, Dr. SP Sharma, Chief Economist of ASSOCHAM, said that till the conflict started in West Bengal, inflation and prices were largely under control. But after the crisis started, it has affected the prices. He said that WPI inflation has now reached 9.8 percent, which is a matter of concern, while CPI inflation is also showing an increasing trend.
According to Dr. Sharma, the current inflation is not mainly caused by demand, rather supply-side factors are more responsible for it. He said that as the supply pressure reduces, inflation is also expected to reduce. He said that strong domestic demand and economic stability have been the main pillars of growth of the Indian economy and these reasons have helped in maintaining the pace of growth. RBI has kept interest rates stable for the last several months, which has supported economic growth. MSME sector also continues to grow.
However, Dr. Sharma cautioned that if interest rates are increased, it may affect market sentiment and loan conditions. He said that at present there is a need to keep an eye on the developments related to the West Asia crisis and wait for the situation. His emphasis is on maintaining the pace of economic development. He also clarified that the effect of change in repo rate is not visible immediately. Monetary policy impacts the economy after some time lag and its impact is more pronounced in the medium to long term.
There may be an impact in the coming days
In the coming days, the impact of the supply and demand situation as well as the developments in the West Asia crisis will be important on the prices of vegetables. If demand increases before festivals and pressure on supply remains, then the burden of inflation on the kitchen budget of common people may increase further.
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