Despite claiming that the fuel price hike was “minimalist and most reasonable”, the Congress appears “too worried” over food inflation.
For the past two years, food inflation has remained static at 16 per cent and there are no signs of abatement even as the wholesale price index for May 2010 showed a 10.2 per cent increase over May 2009.
“Price rise is troubling all of us, and the governments whether at the centre or elsewhere are worried,” Delhi CM Sheila Dikshit had said.
While the party managers maintain that food prices have increased globally during past two years, they also know how important it is to check inflation or else the party might pay a heavy political price.
“Attempts are on to bring down the inflation. But, we don’t think there will be any substantial decrease by December this year. At the most, the inflation may hover around 12 per cent,” a senior leader said.
But the bigger challenge is maintaining a balance between inflation and recession. “We can get inflation deflated but… the threat of deflation is more worrisome,” said another leader.