Editorial

INFLATION ON 7%….HITING THE POOR

Current rate of inflation which is almost 7% hitting the poor. Middle class and lower middle classes are also suffering as purchasing capacity is limited to them. According to the Economist inflaation raising amid slowing growth. Economists also remain divided over how long the current inflationary trend will last. The consensus was veering towards the view that the surge in inflation will be over soon because of weaknesses in domestic demand. However, the sombre warnings from the Reserve Bank of India’s (RBI’s) monetary policy committee members, who opted to pause rate cuts earlier this month, have raised fears that the inflationary bout may last longer than earlier thought. Obviously this is a matter of concern that the job outlook remains bleak, according to the RBI’s latest industrial outlook survey, covering 802 companies, and released earlier this month. As many as 29% of the net respondents said jobs declined in the June quarter. This is the bleakest hiring response recorded by the survey since 2005. As much as 8% of the net respondents said jobs would decline in the quarter ended in September as well. All four indicators of the ease of living scorecard, CPI inflation (7%), core CPI inflation (6%), real rural wage growth (-2%), and job outlook (-29%), remained in red as of July, as the tracker’s reading mirrors the data on public movement as captured by Google. Govt. have to take composite plan to tackle this situation as common people are under suffer.

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