Data Source: Mospi
On the first day of the Budget session of Parliament, the new Government had to confront protests due to the sharp rise in prices with the opposition asking if the Government’s talk about “acche din”will materialise.
While petrol and diesel prices have been hiked recently by Rs 1.69 and Rs 0.5 per litre, respectively, onion prices continue to soar.
BSP’s Mayawati went a step further to say that “instead of ‘acche din’, ‘mehenge din’ have come.
While it may be too early to judge the Government on the price front, we looked at the consumer price inflation (CPI) over the last one year, and see that it has been declining.
CPI eased to 8.28% in May from a three-month high of 8.59% in April aided by lower food prices, and much lower than 11.24% in November 2013.
Going ahead, there is a possibility of an upside risk to inflation due to lower monsoons and the recent spike in crude oil prices due to the on-going tension in Iraq. But for now, the uproar is just what it is.