Increasing inflation in India

As inflation increased, household expenses became burdensome to play with. People are struggling to save some sum by cutting down on their spending. Since the covid19 began the prices of various commodities went up but their income fell down. Prices on edible oil, tea, pulses, meat, cooking gas and services went high by 20 per cent to 40 per cent.

From the last two year there has risen by 10 per cent in retail prices.In November 2021, wholesale inflation rose to 14.23 per cent which is the highest since April 2005. The consumer price index inflation which is based on retail inflation rose to 4.91 per cent in November. Thus WPI leads to rise in CPI.

Due to the increasing pressure on the wholesale side the retail side also faces the pressure. This is the first, foremost reason for the increasing inflation. Many economists also blame the Reserve Bank of India’s easy monetary policy, higher taxes, a widening fiscal deficit and supply constraints during the pandemic.

In October 2020, the CPI based inflation was 7.61 per cent and in September 2021, it was 4.35 per cent. There is a spike in inflation in India. Many lost their jobs in the pandemic and faced cuts in their income.

The unemployment rate in December increased by 8 per cent. 35 millions of people are looking for job, according to the December analysis. And when the unemployment rate is soo high, the growing inflation has become thread to many. In 2017 and 2018 the inflation rate in Indian was 3.33 and 3.95 per cent respectively.

2019 inflation rate was 4.72 per cent which took a jump to 6.62 per cent in 2020 due to pandemic. The inflation in December 2021 took a spike from 4.91 in November to 5.59 per cent in December. The growing GDP is something good for India but with the growing economy India has to deal with the increasing inflation.

Updated by Shraddha Nagwekar