Inflation in India has been high for quite some time now. More so for the common man who has seen higher prices of items, especially food, burn a hole in his pockets. Despite some lean years on account of poor monsoons, large part of the food inflation has largely been due to several supply side issues. Lack of good infrastructure, inadequate storage facilities and the overall apathy of the government in fixing this has been the problem. Plus, it is also running on huge fiscal and current account deficits. The RBI on its part has been raising interest rates to bring inflation under control. But this has not really had the desired effect. Rather it has only made matters worse at a time when economic growth has also slowed down. The UPA has always been an advocate of the common man. One would have thought that from a political point at least it would do something to ease the pressure off the people. And yet it has not shown much initiative in this regard. This is something that seems to have now caught the attention of the Finance Minister Chidambaram. He recently stated that the UPA will pay a high political price if it does not tackle the problem of inflation. Now it appears that this may be a little too late.
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