opinion and view on price rise in India in 20 point
for this question I am given 25 point in brainly so plz and fast
Answers
Answer:
Rising food inflation caused by structural bottlenecks could push even more Indians into poverty
It is clear from the divergence between the rise of wholesale prices and that of consumer prices that increased demand is not pushing up inflation
All indicators of economic activity now suggest that gross domestic product estimates for this fiscal year’s second quarter, expected at the end of November, will be lower than the 5% recorded in the first. It is now clear that the growth downtrend is continuing despite government efforts to address it. While the government has been battling declining demand, it may now have to grapple with another worrying problem: rising inflation.
Data released last week showed consumer price inflation at 4.6% for the country, with rural inflation at 4.3% and urban at 5.1%, all for October. This was largely driven by a rise in food inflation, which climbed to 7.9%, the highest since August 2014. Urban food inflation was in double digits, at 10.5%, the highest for the Bharatiya Janata Party government’s tenure since 2014, while rural inflation rose to 6.4%. While rising inflation may be a worrying sign for the Reserve Bank of India and the government—which is eyeing rate cuts as a way out of the economic slump—it may also signal a revival of demand.
Such an assumption, though, may be premature at this stage. It is true that food inflation has been rising faster than overall inflation. But the same data also shows core inflation declining to a low of 3.3%. Thus, the rise in overall inflation as well as food inflation is unlikely to be a result of rising demand driven by rising incomes. Some of this is confirmed by the wholesale inflation numbers: the Wholesale Price index (WPI) rose just 0.16% in October. This was the lowest rate since July 2016 and extended a downtrend that began in October last year.
The wholesale price of onion has touched Rs 4,000 per quintal (as per the Lasalgaon's wholesale market data), recording a hike of about Rs 1,000 per quintal in the recent months. The onion price hike is the highest in the past four years. In the past six months alone, the onion prices have been up by almost Rs 25 per kg, says the Consumer Affair Department's price monitoring cell data.
The excess monsoon in key producer states like Karnataka, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Uttar Pradesh, and Bihar, has not only burned a hole in common man's pocket but has also led to a shortfall in its supply.So why are the onion prices rising? Trade analysts suggest onion prices see a spike during this time of the year because of floods and illegal hoarding of onion ahead of the festive season. The current spike in the onion prices is attributed to the excess rain this year due to which farmers could not harvest their crop in time, leading to an acute shortage of onion supply in the market.
- the price rise In India is on the high level.
- Inflation in India. ... India uses changes in the CPI to measure its rate of inflation.