The situation on the inflationary price spiral front is worsening by the day. Though this is a global phenomenon on account of the Russia-Ukraine war and the skyrocketing crude oil prices, the situation is all the more cruel for India. Domestic retail inflation has touched 6.95 per cent — the highest during the last 17 months, breaching the upper tolerance level of the medium-term inflation target of 4 per cent (within a band of +1-2 per cent) set by the Reserve Bank of India. The wholesale price inflation in March 2022 has spurted to 14.55 per cent – a four-month-high level.

Incidentally, the high inflation has come on the back of higher food and beverage prices. Data analysis shows food and beverages contributed 43 per cent to inflation year-on-year and 198 per cent month-on-month. Food inflation has shot up to a 14-month high of 5.43 per cent, spelling disaster for the lower middle-class as well as low-income groups – popularly known as the common man.

Housewives are under tremendous pressure as the common man finds it extremely difficult to make ends meet. According to the latest available official figures, the wholesale price index in March 2022 has reached 14.55 per cent from 13.11 per cent a month earlier. The cereals price index has moved up from 6.07 per cent in February 2022 to 8.12 per cent, the wheat price index has advanced from 11.03 per cent to 14.04 per cent, and fuel and power prices from 31.50 per cent to 34.52 per cent.

As compared to last year, prices have zoomed to unbearable levels. Vegetable prices have reached near Rs 100/120 per kg as against Rs 70-90 in April a year ago. Cooking gas has reached an unheard level of Rs 950 per cylinder as compared to Rs 750-800 a year ago. Edible oil prices have almost doubled to over Rs 200 per litre. Petrol prices have reached an unprecedented level of over Rs 120 a litre from around Rs. 70-80 a year ago. In short, even higher middle- income group people are finding difficult to adjust their personal and family budgets. So much so that life has become miserable for all except the super-rich.

Of course, the factors that have fuelled the inflationary price spiral are well-known. The Russia-Ukraine war and the spurt in crude oil prices have sent prices to sky-high levels in almost every country. The situation is the worst in India as the government has turned a blind eye and a deaf ear to the cries of its own citizens. The unprecedented spurt in petrol and diesel prices has had a major impact on prices of several commodities but the government is totally silent on the matter as it earns a sizeable amount from taxes on these fuels. Unfortunately, the NDA government headed by Narendra Modi is concentrating more on its political agenda and virtually neglecting economic issues. In a welfare state, the government’s prime duty is to look after the well-being of the people. But here, the government has totally neglected the plight of the common man.

The clear danger is that the runaway rise in prices of essential commodities will lead to unhealthy developments. Inflation is also a curse for the pace of economic growth of the country. It is time the government wakes up and takes steps to contain the runaway rise in prices. The solution, in fact, is simple: if petrol and diesel are brought into the GST fold, it will have a remarkable impact in bringing down the overall price levels in the country.