INFLATION UNLEASHED.

Inflation has emerged as the biggest problem the country faces now. With food price inflation running close to 20 percent, the central government had been forced to to think of it as a problem that needed much attention. The centre has chosen to identify price trends over the past few months as being the collateral fallout of policies and developments in the domestic and world economy. It is so funny that they have cited the increase in minimum support price for crops, increase in international prices increase in demand due to increase in purchasing power, resulting from higher growth, excess liquidity in the system, inefficiencies in the marketing of farm produce, and the high cost of intermediation. In this usual scenario of rocketing international oil prices, the act of government to link the domestic prices with the international prices erodes its ability to go on with the anti inflation propaganda.