Menace of inflation

Rising prices of essential foods have been a major heartache for citizens across the world. In developing countries like India, the inflation in basics like milk, flour, lentils, etc., has been around 6 to 10 per cent, at the grocery level. In the developed countries, the inflation has been 2 to 3 per cent.

This is also considered high by them. Some Western economies, like the UK, have had inflation as low as 0.1 per cent in the past.

In India, the Government has been distributing free food grains to citizens below an income level, to alleviate their hunger and anger. Monthly financial allowances are also being paid into their bank accounts. Whilst these free giveaways are commendable, they are a temporary band-aid solution. The root causes of inflation need to be addressed.

The end of the war in Ukraine will lower inflation rates. Ukraine is a major producer of wheat, soya, oilseeds, etc. Many nations import its foodgrains. Right now, with the war on, the farmers are unable to work. There are problems of supply and logistics.

Inflation also feeds on itself. When raw material prices augment, everybody starts charging more to recover incremental costs.

Governments in developing countries need to intervene actively, to control prices of essential products. The prices of basics like milk, flour, rice, sugar and oil need to be managed rigorously.

Rajendra Aneja, Mumbai