- Retail inflation, in particular food price inflation has resurfaced in early summer,suggesting that this may go a notch higher as summer proceeds.
- Unprecedented rain and hailstorms in spring is likely to reduce the yield of Rabi crops causing a steep hole in the consumer’s pockets.
- Barring a few drops in food prices owing to seasonal factors, food prices have been rising relentlessly.
- Serious lacunae on the supply side of food commodities have not been addressed by the government.
- Continued weakness in industrial output has also caused inflation in manufactured products.
- The upcoming monsoons will determine near-term inflationary trends, but the looming possibility of the El Nino effect, which had earlier resulted in sub-optimal
- monsoons in India, is a cause of concern.
- Structural problems, especially those in agriculture are bound to brew trouble in the form of inflation for the new government, who will have very less time to settle down in managing economy.
- Read at: http://www.thehindu.com/todays-paper/tp-opinion/haunted-by-inflation/article5924268.ece