Inflation rises - a concern for Indian economy?

The inflation rises to 0.71 per cent for the weekended at 25 April. The inflation has been rising since last three to four weeks in India. The high political campaign and polling in the biggest democracy of the world, the inflation was said to be core issue. But other issues marginalize the inflation as a cores issue in India politics.

The inflation was once seen at around dual digit in the month of August last year and significantly came down to zero this year. Thanks to the fiscal policies were adopted by the Government of India and the Reserve Bank of India.

Even during the high inflation rate it was too difficult for the middle class people to handle the daily budget and family expenses. The rise in the essential goods is the biggest concern of the people. The inflation however may be at around zero but there is no respite in the price for the people.

The political leaders might forget the inflation rates and its impact on Aam Admi with the ending of fifth phase polling in the country. But the people will ever remembers the high price they have been paying due to the high inflation rate.

It seems that price mechanism is only in theoretical aspect in India. In practical, there might be any impact of the price mechanism. Market bottleneck may be the best way for retailers or wholesalers to grab more profit. In the case of onion shortage in year four year ago was the brightest example of market bottleneck in India.

Whatever the impact of the inflation on Indian election but the people are the soft target, those ought to pay the high price. It does not matter whether elections are there or not. Inflation will change your household budget.