Budget 2023: The Indian currency had unexpectedly depreciated against the dollar at the beginning of this financial year. Inflation is also being considered as a reason behind the weakening of the rupee. In April 2022, the annual inflation rate in India rose to 7.79 per cent, which is considered sky-high for the current financial year.
The Cantor India Union Budget 2023 report claimed that 75% of Indians want the government to act faster with regard to rising inflation.
Rapidly rising inflation puts people at risk of failing to meet their household bills, mounting debt and exorbitant health care costs. Also, according to the Kantar Survey Report 2023, three out of four Indians are worried and restless about layoffs and job losses.
During this period, under such circumstances, people expect that the government should take some preventive measures to reduce the issue of inflation.
Another most important segment on which inflation is going to be hit hard is consumer food and beverages. According to Trading Economics, in December 2022, annual consumer price inflation came in at 5.72 per cent, in contrast to the November 2022 reading.
However, the consumer category has declined in rural areas, especially due to rising inflation and costs. Companies ranging from Hindustan Unilever and Godrej to TTK Prestige urged Finance Minister Nirmala Sitharaman to deal with the situation, prompting a spurt in domestic demand once again.
Economists are of the view that the government has to keep in mind the middle class category while taking any decision, as they are the main driving forces of a flourishing nation, economic growth and consumption.
He says that the government should bring some tax reliefs for the salaried and middle class groups. This would leave net disposable income for the middle class groups, which would eventually lift the economy at large.
frequently Asked question:
Q1 How is the Consumer Price Index affected due to inflation?
a The Consumer Price Index measures a set of products and services that are commonly purchased by people. Movements in the CPI reflect changes in the cost of living and prices in a line of consumer goods and services. The CPI also assesses, measures and tracks the price movements people pay for a predetermined set of products and services.
Q2 What is the current inflation rate in India?
a The current inflation rate in India is 5.41 percent.