It is official now. You had paid more for your vegetables, groceries and all the other purchases made in the previous month. The Novemeber month’s inflation figures have shot up to 7.52%, the highest in the previous 14 months.
The Wholesale Price Index (WPI) has shown a clear increase in the retail prices of the vegetables consumed by the aam aadmi. Vegetable prices have soared by 95.25 per cent in November as compared to 78.38% in the previous month.
Potatoes and Onions seem to show the order of rise in the vegetable prices. Potato prices had seen a sharp surge of increase by 26.71 % in November as against a contraction in the price during October month. Onion inflation was reported at 190.34% in November.
What does the RBI and the Government do ?
This high inflationary regime has forced the Reserve Bank of India to raise the interest rates by 25bps in each of its previous two policy announcements, despite the sluggishness shown by the Indian economy. Analysts are expecting a quarter percentage point more hike in the forthcoming RBI’s policy review, scheduled later this week on Wednesday. Higher interest rates are deemed to be unpopular for promoting business and investing in such an economic situation.
High inflation has become a bane in the back for the Union Government as well. The recent poll results combined with the failure of the Government to check the price rise, have been viewed as largely rendering the central government unpopular among the masses. The Opposition BJP has flanked the Union government’s apathy towards checking the rise in food prices, which affects the common man directly.