Like retail, wholesale market prices have also come down slightly. But in reality, there were no signs of price reduction in the country. On the contrary, concerns were raised after the Centre released its June figures on Thursday, with wholesale prices rising above 15 per cent for three consecutive months. It stands at 15.18%. More than ten percent for 15 months. The rise in food prices has exceeded 14%. Only 57% of the grain. On Wednesday, retail price growth was still above seven percent. Even there, the inflation rate of cereals is very high, 17.37%.
Above that the price of money is in the historical bottom. On Thursday, the dollar rose about 18 paisa to touch 80 rupees (79.99). As a result, after a long time in the world market, even if the price of crude oil fell to around 97 per barrel, the idea is that petrol-diesel prices in India will not come down. Because, the cost of importing into the country in dollars is increasing. Which has pushed the trade deficit to record highs already. According to experts, there’s the overall cloud of concern surrounding the economy. There is no sign of good days. Opposition groups called for a boycott of the Modi government on Friday.
In the UPA era, the opposition BJP often lashed out at Prime Minister Manmohan Singh over the fall in the value of money, saying that the dollar would surpass his age. In fact, the Congress has blamed the Modi government for this now. Rahul Gandhi taunted the 80 rupee dollar in a tweet by naming it Amritkal. Randeep Surjewala, the party’s secretary general, claimed, “Now the price of money has passed the age of ‘Margadarshak Mandal’. How much more will it cost?” It is to be noted that Margadarshak Mandal is a group made up of old and experienced members of BJP. CPM’s Sitaram Yechury’s cannon, citing unemployment and skyrocketing food prices, will this government take responsibility for destroying lives and the future?
Economist’s comment
Economist Avirup Sarkar claims that the general public is directly affected by the rise in prices in the retail market. Because, they have to spend more money out of pocket. That may not apply to the wholesale market. But after a while, the continuous rise in wholesale prices pushes the general consumer’s budget. In the words of Mr. Avirup, “When the wholesale price goes up, the producers are the first to push. Who are the buyers in that market. They push the extra cost on the price of the product. That goes to the retail market and puts pressure on the buyer. This chain still works when distributors buy wholesale products and supply them to retailers.”
Government statistics
According to government statistics, the main reason why wholesale price inflation is so high is the price of food products such as grains, potatoes, fruits without any level. Along with this, crude oil and natural gas sector has also witnessed a price hike of 77.29%, fuel and electricity by 40.38%.