The problem of inflation is becoming high day by day. people are facing price rise in almost everything possible from shelter to food and from petrol to bread. Further, notwithstanding little moderation, the price of food inflation has revised persistently increased for almost a year, reflecting the huge gap in the supply and demand mismatches in various commodities. Apart from protein sources, vegetables and oilseeds also show such pattern. Giving the change in consumption pattern as well as yet inappropriate supply responses, food cost inflation is now becoming rising structural in the nature.
Quality of Indian Population is quite bad. A relatively higher percentage of Indian population lacks social responsibility due to which lack of education, corruption and several other issues adversely affecting the economy are being experienced along with the india's structural problem of food inflation.
Huge loss to the nation caused by several scams. It has been depicted that the national political scams have paved way to the huge loss bear by the common people these years. The average man under the burden of inflation due to more scams has to pay higher income tax to compensate the loss. The problem of price rise and the indian structural problem also arises due to these scams and issues.
In my view its a culmination of gap in demand and supply and incompetent policies by the ministry. The inflation is soaring up where people's lives have become miserable with price rise. The politicians are busily involved in corruption activities, filling in their pockets and the opposition is involved in blaming govt. for corruption. No one has the time to address the grave issues like price rise and inflation.
Food inflation in India is due to low productivity and improper storage. Therefore government must first create proper store houses for the existing produce and then focus on increasing the productivity to tackle the food inflation. Merely hiking the interest rates does not seem to be a good long term option to me. please share your views on this.
