Degree of differential between inflation among goods used by high income people and low income people revealed that the rich are bearing high share of the burden of price rise in the economy.
The impact of price rise as measured by the WPI is found higher on rich class at around 9.3% as compared with the poor class at around 8.4%, said Mr. Saurabh Sanyal, Executive Director, PHD Chamber of Commerce & Industry.
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%.
Interestingly on the contrary, the average inflation for seven commodities mostly used/consumed by the poor like Rice, Potato, Fodder, Bidi, Bicycle, Toilet soap and Kerosene stands at 8.4%. Exorbitant price rise has been observed for Rice at 18.8% followed by Fodder at 17.9%, which is used mainly by the rural population to feed their livestock.
Inflation rise has been rampant in India over the past couple of years and 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 the basic commodities which the poor and rich make use of in their daily lives have reached worrisome levels.
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, said Mr. Sanyal.
The government must enhance public investments in infrastructure sector especially the agriculture infrastructure in terms of supply side infrastructure i.e. farm gate to consumer doorstep supply chain management, which could effectively tackle the challenge of inflation.
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