The country’s retail inflation, which is measured by the Consumer Price Index (CPI), has spiked to 7.41 percent in September 2022, up from 7 percent just a month ago which is indicative of the fact that it is turning out to be uncontrollable, however, on the other side, the RBI’s Monetary Policy Committee (MPC) has underlined the rate hikes will help contain the price rise. It has not ended there but has made a point that inflation is all set to fall below 6 percent next year. That will be good news for people because it will ease up the situation a little bit, however, keeping in view the current global circumstances and what the IMF has predicted in the next year or so, that does not point to any improvement anytime soon.
It is not only about the retail inflation, stagnant or decreased income, but there is also the factor of the slowdown in manufacturing which is turning out to be a challenge for the Indian economy because the slowdown would automatically mean that the inflation will remain, or maybe increase further and if people are at least able to get hold of something at the end of the month, they might have to even forget about it if the situation does not get any better in the next few months. It is to be noted here that, across India, the rural economy has been taking a giant hit which saw an increase in the combined consumer price index (CPI), more than what the urban economy recorded, and interestingly the consumer food price index (CFPI) has also been witnessing an increase, hitting more the rural population.
The scenario paints a grim picture, telling it bluntly that if things don’t fall in line, the people might even have to struggle for food which could take an ugly turn in a rural setting. Setting the festivity aside, there is a need for the Government to take the necessary steps to, first boost manufacturing, increase exports and rely less on imports; become a bright spot as has been pictured by the IMF and in parallel, especially, for the people who fall in the lower level of the income structure, expand the scope of the Government welfare schemes so that they could at least sustain. Let’s talk about growth and success later!
