...but the poor continue to pay the inflation tax | business | Hindustan Times
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...but the poor continue to pay the inflation tax

business Updated: Nov 19, 2009 22:06 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The country is reeling under the impact of steep rise in a number of food items pummelled by a supply crunch in staple items such as potatoes, cereals and pulses.

Official data shows that wholesale prices of food articles have grown by about 14.55 per cent this year.

High inflation is often referred to as tax on poor as it contributing to fatter household bills without a rise in income.

On an average, the price of vegetables have increased by nearly 55 per cent since March this year.

Experts say the rise in price for potatoes and onions is a temporary phenomenon and the prices would start easing within a few weeks time.

“Though the high prices may continue for some time, it will not be a prolonged affair,” S Bhonde, additional director of the Nasik-based National Horticultural Research and Development Foundation told Hindustan Times.

“The softening of price for potatoes and onions may begin by the end of next week itself as the new harvest is making way towards the market.”