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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.

India News

Tej Pratap Yadav claims life under threat, says everyone seems like an enemy

Tej Pratap Yadav, contesting from Mahua, has claimed that his life is under threat and that his enemies might get him killed. The Janshakti Janta Dal chief also extended birthday wishes to his brother Tejashwi Yadav.

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Tej Pratap Yadav

RJD supremo Lalu Prasad Yadav’s elder son and Janshakti Janta Dal chief Tej Pratap Yadav has alleged that his life is “under threat” amid the ongoing Bihar assembly elections. Tej Pratap, who recently floated his own political outfit after being expelled from the Rashtriya Janata Dal (RJD), is contesting from the Mahua constituency.

Tej Pratap says security increased amid growing fears

Speaking to reporters in Patna, Tej Pratap said his security cover has been strengthened due to potential threats. “My security has been increased… I am under threat. My enemies may even get me killed. Everyone seems like an enemy,” he claimed, without revealing any specific names.

The former minister’s statement comes months after he was expelled from the RJD on May 25 for six years following a controversy over a social media post in which he allegedly admitted to being in a relationship. The post was later deleted, with Tej Pratap claiming that his account had been “hacked.”

Wishes brother Tejashwi on birthday

Despite the ongoing political rift, Tej Pratap extended his wishes to his younger brother and RJD leader Tejashwi Yadav on his birthday, saying, “My blessings are always with him. He should continue to grow further.”

Tej Pratap had earlier alleged a “conspiracy” to create a divide between him and Tejashwi, referring to internal party issues and describing those responsible as “Jaichand,” a metaphor for traitors in Indian history.

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PM Modi confident of NDA victory, says will return for Bihar swearing-in

PM Modi wrapped up his Bihar campaign asserting NDA’s win, as BJP leaders intensified attacks on Rahul Gandhi and Priyanka Vadra raised vote fraud charges.

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Prime Minister Narendra Modi concluded his campaign for the Bihar Assembly elections with a strong message of confidence, asserting that the people of the state have already given the opposition alliance a “65-volt shock” in the first phase of polling. Addressing his final rally in Bettiah, the Prime Minister said he would return soon to attend the swearing-in ceremony of the new NDA government.

PM targets RJD, calls out ‘vote bank politics’

At the Bettiah rally, PM Modi launched a scathing attack on the RJD, warning that if the opposition party came to power, it would impose fear among citizens. “If they are voted in, they will put a ‘katta’ on people’s heads and ask them to raise their hands,” he said. Earlier, in Sitamarhi, he recalled the NDA’s efforts to develop the sacred Punaura Dham, birthplace of Goddess Sita, while accusing the opposition of protecting infiltrators for political gains.

BJP leaders intensify attack on Rahul Gandhi

Union ministers Amit Shah and Rajnath Singh joined the campaign trail with fierce remarks targeting Congress leader Rahul Gandhi. Shah mocked Gandhi’s leadership by saying his “dukaan” (shop) would shut down after the Bihar results, while Singh questioned his pro-Dalit stance, suggesting Gandhi had never promoted leaders from marginalized communities within his party.

Rahul Gandhi, who was in Madhya Pradesh, was criticized by BJP leaders for skipping Bihar rallies. Madhya Pradesh Chief Minister Mohan Yadav likened him to “a groom who ran away from his own wedding,” claiming his absence reflected the opposition’s loss of confidence.

Priyanka Vadra accuses EC of bias

Meanwhile, Congress leader Priyanka Gandhi Vadra led the campaign in Bihar, alleging that the Election Commission was favoring the ruling party. During one of her rallies, she accused top poll officials of “robbing people of their constitutional right to vote,” reiterating the “vote theft” charge made by her brother Rahul Gandhi.

RJD celebrates Tejashwi’s birthday with symbolic gesture

In Patna, the RJD marked Tejashwi Yadav’s 36th birthday by unveiling posters showing him seated on a throne labeled “CM of Bihar.” Party workers celebrated by cutting a 36-pound cake as campaign activities intensified ahead of the poll’s final phase.

Kishor claims migrants are key factor

Jan Suraaj Party founder Prashant Kishor said migrant workers and their families were voting in large numbers for his party. He claimed that the central government halted special trains during Chhath to prevent the “apravasis” from influencing the electoral outcome.

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Rijiju hits back at Congress over shortened winter session remarks

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Kiren Rijiju

Union Parliamentary Affairs Minister Kiren Rijiju has strongly countered Congress leader Jairam Ramesh’s criticism regarding the upcoming winter session of Parliament, asserting that the opposition should participate in debates instead of obstructing parliamentary proceedings.

Rijiju responds to Congress claims

The winter session of Parliament is scheduled from December 1 to December 19. Reacting to Ramesh’s remarks questioning the shortened duration, Rijiju said in a post on X that Congress leaders appear uninterested in running parliamentary sessions. “As if Congress leaders are interested in running Parliament Session! But I will never get tired of repeatedly appealing to the Congress Party to participate in the Parliament debates and discussions and also not to create obstacles for other sincere MPs. Let Parliament function,” he stated.

Rijiju emphasised that the government is ready for a “constructive and meaningful session” that will strengthen democracy and serve public aspirations.

Congress questions delay and timing

Earlier, Jairam Ramesh alleged that the winter session was “unusually delayed and truncated.” He said that Parliament sessions are typically convened between November 20 and 23 and last until December 24. “This time, the session will begin on December 1 and last only 15 days. I don’t understand what the government is running away from,” he said while speaking to media.

Ramesh also speculated whether the session was being shortened because of the upcoming Lok Sabha elections, suggesting that the government has no legislative business or debate agenda.

Congress lists key issues for discussion

The Congress leader listed several issues that the opposition plans to raise during the session, including the Special Intensive Revision (SIR) controversy, economic slowdown, unemployment, and foreign policy matters. Ramesh criticised the government’s silence on US President Donald Trump’s remarks about mediation in the India-Pakistan conflict and the unresolved situation at the India-China border.

He further linked the high voter turnout in Bihar to public dissatisfaction with the ruling NDA, asserting that the “Mahagathbandhan will form the government” there.

President Droupadi Murmu has already approved the government’s proposal to convene the winter session from December 1 to 19, subject to parliamentary business requirements.

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