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Indian economy hit as retail inflation reaches 7.35%, vegetable prices rise by 60%

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

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Indian Economy

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

The upsurge was largely due to the rise in food prices, which account to more than a third of Indian household’s budget, and the overall food inflation was 14.12% in the month of December, according to the Ministry of Statistics and Programme Implementation.

The vegetable prices have risen by 60%, while the price of pulses saw an increase by 15.44%, food & beverages at 12.16%, meat & fish by 9.57% and spies by 5.76%, mostly pertaining to the supply shocks caused largely by extreme weather events.

Prices of potatoes, onions and tomatoes, the three most important vegetables in the CPI basket, increased by 37%, 328% and 35% respectively in December on a year-on-year basis.

Food Price Inflation

Food Price Inflation

Retail inflation based on the Consumer Price Index was 2.11% in December 2018 and 5.54% in November 2019.

The economic growth of India was 4.5% in the third quarter of last year that ended in September 2019 and is expected to be to at 5% for the last quarter going into 2020.

Consumer Price Index. (Source: CMIE)

Consumer Price Index. (Source: CMIE)

Monetary Policy Committee (MPC) has paused the cutting of interest rates due to the rise in retail inflation and they will use the December data when they sit out for the meeting in February.

Trends:

According to CMIE report, over the last four months, food prices and fuel prices have seen a significant rise which in turn has affected the overall CPI.

Food CPI in February 2014 was 7.89%, which has now risen to 14.12%.

While the overall CPI in February 2014 was 7.27 %, which has now scaled to 7.35%.

Future:

State Bank of India (SBI) has projected the rate of retail inflation to breach eight per cent in January 2020, as per a report in Businessline. It also cautioned that if food price inflation does not revert, the economy can slip into stagflation.

2024 Lok Sabha Elections

Election Commission orders AAP to modify Lok Sabha campaign song

AAP minister Atishi attacked the ECI for putting a ban on the party’s Lok Sabha election campaign song. She said this has happened for the first time in the history of India that the Election Commission has put a ban on the election song of a political party.

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The Election Commission of India asked the Aam Aadmi Party to modify its election campaign song on Sunday. The Election Commission pointed out that the phrase jail ke jawaab me hum vote denge shows an aggressive mob holding the photo of Arvind Kejriwal showing him behind bars, casts a bad impression of the judiciary. The ECI added that the phrase appears several times in the advertisement which contravenes the provisions of ECI Guidelines and Rule 6(1\(g) of Programme and Advertising Codes prescribed under the Cable Television Network Rules, 1994.

AAP minister Atishi attacked the ECI for putting a ban on the party’s Lok Sabha election campaign song. She said this has happened for the first time in the history of India that the Election Commission has put a ban on the election song of a political party.

The Election Commission listed some of the phrases that it found in violation of codes. The phrase: Tanashahi party ko hum chot denge with the video clip showing the protesters clash with the police (running from 00:21 to 00:23) incites violence. The phrase: gunda gardi ke khilaf vote denge and Tanashahi karne wali party ko hum chot denge running from duration 00:27 to 00:32 Sec with the video clip showing Manish Sisodia being escorted by the police. The words and the video clip shows the police in bad light.

The Election Commision said the phrase: Awazein khilaf thi jo sabko jail me daal dia, bas unko hi bahar rakha jisne inko maal dia. Itna lalach, itna nafrat, bhrastachari se mohabbat shows slanderous remarks and is a criticism of BJP on the basis of unverified facts and also casts bad impression of the judiciary. The Election Commission stated that the phrase Tanashahi party ko hum chot denge with the video clip showing aggressive mob clashing with the police shows criticism of the ruling party based on unverified facts.

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2024 Lok Sabha Elections

PM Modi criticises Rahul Gandhi for allegedly insulting Hindu kings, accuses Congress of not addressing atrocities by Muslim rulers

The prime minister was addressing an election rally in Karnataka’s Belagavi where he said, the statements made by the Shehzada of Congress have been made very thoughtfully to appease their vote bank. But the Shehzada does not utter a word about the atrocities committed by the Nizams, Nawabs, Badshahs and Sultans.

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Prime Minister Narendra Modi on Sunday attacked Congress leader Rahul Gandhi for allegedly insulting Hindu kings but not saying a word on atrocities committed by Muslim rulers like Aurangzeb. The prime minister was addressing an election rally in Karnataka’s Belagavi where he said, the statements made by the Shehzada of Congress have been made very thoughtfully to appease their vote bank. But the Shehzada does not utter a word about the atrocities committed by the Nizams, Nawabs, Badshahs and Sultans.

Congress does not remember the atrocities committed by Aurangzeb who destroyed thousands of Hindu temples.  He said Congress forms political alliances with parties who praise Aurangzeb. PM Modi said the Congress do not talk about all those who destroyed Hindu pilgrimage sites, looted them, killed Hindu people, and killed cows.

The Prime Minister was referring to a video clip of Rahul Gandhi which was shared by many BJP leaders. In the video clip, the Gandhi is heard saying, during the rule of Rajas and Maharajas, they could do whatever they wanted and even grab someone’s land. The Congress fought for India’s independence and brought democracy in the country.

PM Modi also mentioned the death of a Karnataka Congress corporator’s daughter, who was killed by her former colleague in her college.  He said the Congress government gives priority to appeasement and for them, the lives of daughters like Neha have no value. The prime minister further added that the Congress is only concerned about its vote bank.

Neha Hiremath, daughter of Congress Councillor of Hubballi-Dharwad Municipal Corporation Niranjan Hiremath, was murdered on the campus of BVB College on April 18 by her ex-classmate Fayaz. PM Modi accused Congress for supporting anti national parties like PFI (Popular Front of India) for votes which is an anti-national organisation that gives shelter to terrorism and which has been banned by the Modi government.

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India News

Delhi Congress President Arvinder Singh Lovely resigns, says he feels handicapped under Deepak Babaria’s leadership

Arvinder Singh Lovely pointed out many instances when party leaders objected to the way Deepak Babaria, the Congress’s general secretary in-charge for Delhi, conducted the state of affairs. Lovely said that he was under great pressure to expel the leaders who objected to Babaria’s ways.

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Delhi Congress President Arvinder Singh Lovely on Sunday resigned from his post, citing interference by the party’s general secretary in-charge and alliance with the Aam Aadmi Party in Delhi as major friction points. In his resignation letter to Congress chief Mallikarjun Kharge, Lovely said he felt handicapped and unable to continue as the president of the Delhi Congress unit.

He pointed out many instances when party leaders objected to the way Deepak Babaria, the Congress’s general secretary in-charge for Delhi, conducted the state of affairs. Lovely said that he was under great pressure to expel the leaders who objected to Babaria’s ways. Arvinder Singh Lovely said the Congress’s alliance with the AAP in Delhi for the Lok Sabha elections, which he claimed was opposed by the  Delhi Congess unit.

 Lovely wrote in his letter to the Congress President that the state Congress Unit was against forming an alliance with the Aam Aadmi Party which was formed on the sole basis of levelling false, fabricated and malafide corruption charges against the Congress, and in turn, whose half of the cabinet ministers are in jail on corruption charges. He further called the alliance a compromise to improve chances of victory for the Congress.

Arvinder Singh Lovely said while he respected the Congress’s alliance decision with Aam Aadmi party but he was upset by Congress’s North East Delhi seat candidate Kanhaiya Kumar praising AAP chief Arvind Kejriwal. Lovely further said that according to the alliance, the Congress was allotted 3 Lok Sabha seats, of which 2 – North West and North East – constituencies were given to total strangers.

Udit Raj is a Congress-AAP joint candidate in North West Delhi, whereas Kanhaiya Kumar is contesting from the North East seat. Arvinder Singh Lovely said the announcement of Raj and Kumar as candidates had caused an uproar and protests by Delhi Congress leaders and workers within the party.

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