Inflation march gathers pace
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY

New Delhi, April 4: Inflation spiralled to a more-than- three-year high of 7 per cent for the week ended March 22, setting alarm bells ringing within the ruling alliance, which decided to crack down on hoarding.

Rising vegetable and cooking oil prices were behind the high rate of inflation.

Vegetable prices shot up by nearly 5 per cent in just one week, while onion prices rose 22 per cent in two months.

Ten years ago, when onion prices rose sixfold, the BJP was voted out of power in two states.

According to Arun Jaitley, spokesperson for the BJP, which now hopes to play the price card in coming elections, “Inflation is a UPA tax on the aam aadmi.”

This year will see elections in Delhi, Madhya Pradesh, Rajasthan, Chhattisgarh, Karnataka and Jammu & Kashmir, while the Lok Sabha polls will be held next year.

Besides onions and vegetables, grain prices have jumped 17-20 per cent, pulses by 20-35 per cent and sugar by over 18 per cent in a little over two months.

Rising food prices have cost politicians their jobs in the past.

“Inflation has always proved to be a vote loser for ruling parties. ‘India Shining’ or ‘aam aadmi’ rarely work in inflationary situations,” said S.P. Gupta, former member of the Planning Commission.