Tuesday, November 15, 2011

Food Inflation: Groping In The Dark

By Devinder Sharma, Countercurrents.com, Nov 14, 2011

Ground Reality

Although Prime Minister Manmohan Singh considers rising food inflation to be a sign of growing prosperity, the reality is very harsh and painful. Rising food inflation, which continues for the 4th successive year now, has hit the aam aadmi like never before. Adding fuel to fire is the frequent raise in petrol prices.

Every time food inflation crosses the double-digit barrier, the Prime Minister Manmohan Singh, the Finance Minister Pranab Mukherjee and the deputy chairman of the Planning Commission, Dr Montek Singh Ahluwalia, have been quick to set a deadline some three to six months ahead during which period they promise to bring down the prices. While the failure to stem the price rise is written large, what is more worrying is the complete inability of the government to comprehend the reasons behind it. Economists and policy makers appear clueless and therefore continue to grope in the dark.

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