Chidambaram, Jairam Ramesh attack govt on retail food inflation

Senior Congress leaders P Chidambaram and Jairam Ramesh on Tuesday attacked the Union government over retail inflation rising to 7 per cent in August.

Chidambaram said that if Union Finance Minister Nirmala Sitharama did not see this as a “threat”, she “does not represent the average family in India, according to PTI.

The data released by the statistics ministry on Monday showed that consumer prices – driven by high food and fuel costs – rose to 7 per cent up from 6.71 per cent in July. The data marked a drift from the previous trend as inflation was on the decline for the last three months.

“Only a few days ago, the Honourable FM said that inflation was not a ‘red-lettered priority’ for her. India’s retail inflation surged to 7 per cent yesterday. Food inflation is 7.62 per cent,” Chidambaram said in a tweet.

“If the Honourable FM doesn’t see ‘red’ even now, we can only conclude that she does not represent the average family in India,” the former finance minister said.

On the other hand, Congress general secretary Jairam Ramesh alleged that the Naredra Modi government continues to be in denial of this “huge problem” affecting every family. “Govt data released today shows retail inflation in food basket at 7.62 per cent in Aug 22 — over double the rate in Aug ’21. How long will the Modi Sarkar continue to be in denial of this huge problem affecting every family?” Congress general secretary Jairam Ramesh said in a tweet.

Inflation is determined by the consumer price index (CPI ) – measuring price change for a basket of goods and services over time, reported the Hindustan Times.

According to sources, food items make up half of this inflation basket and were at 7.62 per cent in August, raising concerns among economists as the trend breached the estimated rates and has kept above the Reserve Bank of India’s upper band of 6 per cent for eight consecutive months now. – INDIA NEWS STREAM

(With agencies’ inputs)