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Surging inflation: Why is it a key issue to address in the Union Budget 2023?

Budget 2023: Inflation is one of the major economic problems that needs immediate attention before things go south for India. People are expecting the government to take some measures in the upcoming budget to curtail the inflation numbers down to a bearable extent.

India TV Business Desk Edited By: India TV Business Desk New Delhi Published on: January 27, 2023 12:08 IST
The galloping inflation has put people at risk with failing
Image Source : FILE PHOTO/PTI The galloping inflation has put people at risk with failing to meet their household bills, mounting debts, and exorbitant healthcare expenses.

Budget 2023: The Indian currency earlier this fiscal year weakened against the dollar to an unexpected low. Inflation is considered one of the factors behind the weakening of the rupee. In April 2022, the annual inflation rate in India spiked to 7.79 per cent, which is considered to be sky-high for the current fiscal. 

The Kantar India Union Budget 2023 report claims that 75% Indians want the government to take swift action with respect to  the surging inflation. 

BUDGET 2023: FULL COVERAGE

The galloping inflation has put people at risk with failing to meet their household bills, mounting debts, and exorbitant healthcare expenses. Besides, three in four Indians are worried and disquieted about layoffs and job losses, as per the Kantar survey reports 2023. 

During this period, under such circumstances, people expect the government should take some preventive measures to truncate the inflation issue. 

Another most important segment that inflation is going to affect badly is the consumer food and beverages. In December 2022, the annual consumer price inflation relieved to 5.72 per cent as opposed to November 2022 readings, according to Trading Economics. 

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However, there has been a plunge in the consumer category in rural areas, especially due to the spiking inflation rise and costs. Companies namely Hindustan Unilever and Godrej to TTK Prestige put forth a request to the Finance Minister, Nirmala Sitharaman to tackle the situation that leads to surge in domestic demand once again. 

Economists are of the view that the government has to keep the middle class category in mind whilst taking any decision, as they are the key driving forces of a flourishing nation, economic growth, and consumption. 

They say that the government should bring in some tax reliefs for the salaried and middle class groups. This would lead to an aggregate disposable income left for the middle-class groups, which eventually would lift the economy at large. 

FAQs:

Q1 How does the consumer price index get affected due to inflation?
The consumer price index consists of a group of products and services that are commonly bought by people. Ups and downs in CPI tells the cost of living and the price shift in the consumer goods and services line. The CPI also assesses, measures, and tracks the price movements paid by the people for a prefixed group of products and services. 

Q2 What is the current inflation rate in India?
The current inflation rate in India is 5.41 per cent.

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