Inflation Hit the Rich More Than the Poor: Gov. of India

NEW DELHI: At least four states reported 99 per cent inflation in April, with West Bengal and Madhya Pradesh leading the list, as pricing pressures ravaged household budgets throughout the nation.

Thursday, the National Statistical Office (NSO) issued data indicating that inflation, as measured by the consumer price index, rose to a nearly eight-year high of 78% due to rising food and gasoline prices. As a result of supply disruptions caused by the conflict in Ukraine, several states are experiencing elevated pricing pressures. 

Haryana and Telangana were the other two states with inflation rates of 9 per cent, while seven states had rates of 8 per cent or above, illustrating the severe strain caused by the significant increase in the rate. Tamil Nadu and Kerala, however, recorded rates of just around 5 per cent. 

D K Joshi, an economist called for a detailed analysis of the disparity in rates across the country. “One explanation for the high prices might be the greater rural economy presence in certain areas, and another is that gasoline tariffs differ between states, which could have an effect,” he added. Rural inflation overtook urban inflation in April, rising 8.4% compared to urban inflation’s 7.1% increase, according to retail inflation data. 

Rising inflationary pressure has wreaked havoc on consumers. The monthly expenditures have skyrocketed. Including food, seafood, veggies, gasoline, and school fees. Monthly expenditures have increased by at least 20 per cent in the past year. As with petrol, spend at least Rs 2,000 extra every month on groceries and other items. 

Families are forced to modify their budgets to the new reality, which has a negative impact on their savings. Price increases are typical, but the rate at which they have increased in recent years is exceptional. Then there are loans and monthly payments. The constant price increases of groceries, fuel, cooking gas, and food, in general, have significantly reduced people’s savings. 

Moreover, price increases would be mitigated if income also increased proportionally, but in the past several years, income has been severely impacted by COVID-19.