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The common man is troubled by the onslaught of inflation. Everyone is asking when will the inflation witch stop torturing the common man. The Economic Survey presented today has brought answers to these questions. It has been told in the Economic Survey that there is no hope of respite from stubborn inflation, in such a situation, the fire of increasing interest rates by the Reserve Bank is also not expected to cool down. Although the Economic Survey does say that this is not a major concern for the Indian economy, inflation is not high enough to reduce private consumption or low enough to reduce investment.
Interest rates will remain high for a long time
The Economic Survey states that the efforts being made by the Reserve Bank to check stubborn inflation may continue even further. The Economic Survey 2022-23 was presented in Parliament by Finance Minister Nirmala Sitharaman. The Reserve Bank has predicted an inflation rate of 6.8 percent for the next year. For the next 10 months from January 2022, the rate of inflation was higher than the upper tolerable level of RBI. However, it declined in November and came down to below 6 per cent. “The RBI projects headline inflation at 6.8 per cent in FY2023, outside its target range. Also, it is not enough to curb private consumption and is not too low,” the survey said. that may weaken the inducement to invest.
Inflation wreaks havoc due to Ukraine war
It has been told in the Economic Survey that the Reserve Bank has fixed a tolerable limit of (+/-) 2 percent for the inflation rate. The Reserve Bank wants to keep inflation at 4 per cent. But India’s wholesale and retail price inflation suddenly caught fire after the Russia-Ukraine war that started in February 2022, mainly due to supply chain disruptions. And for most of 2022, inflation kept troubling the people.
food inflation a concern
According to the Economic Survey, the whole world is troubled by the shortage of agricultural commodities due to the war between Russia and Ukraine. These two countries are among the most important producers of wheat, corn, sunflower seed and fertilizer. This problem has affected India as well and the cost of fertilizers has also affected Indian agriculture and economy.
Two rays of hope amid recession
It has been told in the survey that in the midst of the global recession, two flames of hope are flickering. The first is lower oil prices and an improvement in the current account deficit. The survey states that the overall global situation will remain under control. Retail inflation dropped to a one-year low of 5.72 per cent in December. While wholesale inflation stood at a 22-month low of 4.95 per cent.
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