Inflation falls, but household budgets still feel the heat
The Tribune Editorial: The drop mainly comes from lower food prices and recent GST cuts that led to a fall in prices of consumer goods.
INDIA’s retail inflation has dropped to a low of 0.25% in October. It is the lowest since 2013. The government has hailed this as a big achievement, saying it shows strong control over prices and sound financial management. But for ordinary families, the story is not so simple. The fall in inflation mainly comes from lower food prices and recent GST cuts that led to a fall in prices of consumer goods. The sharp drop also reflects a base effect from high prices last year, which may not last long. While this looks impressive, many people continue to feel the pressure of high household expenses. Prices of daily items like milk, pulses and vegetables are still fluctuating, affecting family budgets. So, while the overall inflation rate has dropped, the cost of living for common man has not fallen in the same way.
