Inflation hikes living cost in J&K

Tribune News Service

Jammu, July 15

Jammu and Kashmir is slowly turning into an expensive Himalayan state in India to live in due to a high inflation rate, and the Consumer Price Index (CPI) data for June endorses it.

According to the CPI data released by the Union Ministry of Statistics And Programme Implementation, J&K has figured among states where the inflation rate of 3.74 per cent was higher than the all-India average of 3.18 per cent.

The CPI is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Traders of the state have cited several reasons, including high transportation cost, bad condition of highways, rampant corruption and long transit time, for the hike in prices of essential commodities.

“There are many economic factors attached to the rise in prices of essential commodities in the state. The dilapidated condition of highways and logistical problems, apart from frequent closure of roads due to hostile weather conditions, and uncertainty mainly contribute to a high inflation,” said Rakesh Gupta, president, Jammu Chamber of Commerce and Industry.

Neeraj Anand, president of the Chamber of Traders’ Federation, Jammu, said the high transportation charges were the main cause of a spike in inflation in the state.

“The transporters happily come and unload goods up to Madhopur, but they show reluctance to carry goods up to Jammu or for that matter the Kashmir valley due to political uncertainty and unrest. Besides, the rampant corruption, bad condition of roads and long travel time are other reasons for the problem. All these factors add to high inflation despite the fact that there is toll exemption and subsidies on many goods,” Anand said.

“J&K is a consumption state. Many reasons play a part in high prices of goods with bad condition of highways being one of them. Hot and humid conditions cause spoilage and long transit time also allows hoarders to profit, especially when the tourist season drives up demand,” said Parag Abrol, one of the leading distributors in Jammu city.

Interestingly, as per the official data, the retail inflation continued to climb across the country during June, reaching an eight-month high of 3.18 per cent.

State’s inflation rate higher than rest of country

• According to the CPI data, J&K has figured among states where the inflation rate of 3.74 per cent was higher than the all-India average of 3.18 per cent
• Traders of the state have cited several reasons, including high transportation cost, bad condition of highways, rampant corruption and long transit time, for the hike in prices of essential commodities