Impact of inflation higher on the rich: PHD Chamber
Updated: Nov 05, 2013 06:12:34pm
New Delhi, Nov 5 (KNN) The degree of differential between inflation among goods used by people of high income group and that of low income group revealed that the rich are bearing a high share of the burden of price rise in the economy, revealed a report.
"The impact of price rise as measured by the Wholesale Price Index (WPI) is found higher on rich class at around 9.3 per cent as compared with the poor class at around 8.4 per cent," Executive Director, PHD Chamber of Commerce and Industry, Saurabh Sanyal said.
In the select basic items of consumption, the rich class is impacted more at the rate of 9.3 per cent when compared with the poor class at the rate of 8.4 per cent during the current festive season, the report by PHD Chamber of Commerce and Industry released recently said.
While the average inflation of goods consumed by the high income group such as fruits, pulses, cashew nuts roasted, cigarette, motor vehicles, perfume and LPG stands at 9.3 per cent, the average inflation for seven commodities mostly used by the poor like rice, potato, fodder, bidi, bicycle, toilet soap and kerosene stands at 8.4 per cent, the report said.
Inflation in India can be tackled only by easing supply side constraints and improving infrastructure at a rapid pace, which can lead to an overall development in the economy, going forward, Sanyal added.
"The government must enhance public investments in infrastructure sector especially the agri-infra in terms of supply side infrastructure i.e. farm gate to consumer doorstep supply chain management, which could effectively tackle the challenge of inflation," the report said.
Inflation rise has been rampant in India over the past couple of years and has spelled distress for people across all income groups. Needless to say, almost all the segments are the victim of price rise of goods of daily use as prices have shot up to unprecedented levels.
The degree of inflation among basic commodities which both the poor and rich make use of in their daily lives, have reached worrisome levels, revealed the report. (KNN/SD)
"The impact of price rise as measured by the Wholesale Price Index (WPI) is found higher on rich class at around 9.3 per cent as compared with the poor class at around 8.4 per cent," Executive Director, PHD Chamber of Commerce and Industry, Saurabh Sanyal said.
In the select basic items of consumption, the rich class is impacted more at the rate of 9.3 per cent when compared with the poor class at the rate of 8.4 per cent during the current festive season, the report by PHD Chamber of Commerce and Industry released recently said.
While the average inflation of goods consumed by the high income group such as fruits, pulses, cashew nuts roasted, cigarette, motor vehicles, perfume and LPG stands at 9.3 per cent, the average inflation for seven commodities mostly used by the poor like rice, potato, fodder, bidi, bicycle, toilet soap and kerosene stands at 8.4 per cent, the report said.
Inflation in India can be tackled only by easing supply side constraints and improving infrastructure at a rapid pace, which can lead to an overall development in the economy, going forward, Sanyal added.
"The government must enhance public investments in infrastructure sector especially the agri-infra in terms of supply side infrastructure i.e. farm gate to consumer doorstep supply chain management, which could effectively tackle the challenge of inflation," the report said.
Inflation rise has been rampant in India over the past couple of years and has spelled distress for people across all income groups. Needless to say, almost all the segments are the victim of price rise of goods of daily use as prices have shot up to unprecedented levels.
The degree of inflation among basic commodities which both the poor and rich make use of in their daily lives, have reached worrisome levels, revealed the report. (KNN/SD)
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