The people who are busy filling the government coffers are shattered by inflation

- Inflation is likely to remain high in the near future on the back of rising crude oil prices and rising fuel prices.

Millions have lost their jobs in the country due to the Koro epidemic and lockdown. So the income of millions of people has been adversely affected. On the other hand, in the second wave of transition, rising prices have made it difficult for people to make ends meet. Wholesale inflation rose to an all-time high of 12.5 per cent in May. Retail inflation rose to a six-month high of 7.5 per cent. A steady rise in fuel prices in the country has made a number of goods and services more expensive. Due to which the budget of the general public has been disrupted. In the current scenario, fuel prices and inflation are scrambling to reach higher levels. In the opposite situation, the government has been busy filling its coffers, on the other hand, the people are constantly being crushed by inflation.

According to economic analysts, retail inflation rose to a six-month high of 7.5 per cent in May from 5.5 per cent in April. It is subject only to the rise in crude and fuel prices. The sharp rise in retail prices of diesel and petrol in the country over the last few weeks has led to a sharp rise in the prices of many consumer goods, including food items. Food inflation, which was 1.2 per cent in April, rose to five per cent in May due to higher fuel prices. These figures indicate that food inflation has doubled in just one month.

Thus, the steady rise in inflation has become a recurring challenge for policy makers. On the one hand, economic growth has faltered. So, on the other hand, inflation is raising its head. Given the prevailing factors, economic experts believe that wholesale inflation will continue to rise in June. Behind which there will also be an increase in retail inflation. Inflation is unlikely to fall to single digits in the next three to four months, given the rise in crude.

Crude is also gaining ground in the global market. Crude jumped to સપાટી 6 a barrel last week on rising global demand. Which is the highest level of the last 6 months. In the last one month, crude oil prices have risen by 7.5 per cent and in the last one year, by 3 per cent. In addition, crude oil prices have risen sharply in the last eight months.

According to experts, the demand for crude from the US, Europe as well as Asian countries has increased due to the increase in economic activity during the unlock process along with the decline in global fury. Even oil-producing countries do not increase production with the intention of keeping prices high. On the other hand, speculation has also pushed up crude prices. Thus, in view of all these activities, the price of crude oil is likely to rise to the level of 50 in the near future.

Thus, given all these activities, there is no possibility of petrol-diesel prices falling in the country in the near future. Due to the high tax burden in India, its price is not expected to fall. Oil refineries in India levy a tax of 120 per cent on petrol and 15 per cent on diesel due to the base price tax. This tax is levied by the Center as well as the State Government. Petrol-diesel prices will come down only if the government reduces taxes. But the government is not in the mood to reduce it. And has been busy filling his own coffers. The government has given Corona an excuse not to shout about it. Thus, the government has found a loophole in this issue. Thus, the government is busy filling its own coffers. And the people are suffering from inflation.

Inflation increased the speed of jet aircraft

The Reserve Bank had set a target of six per cent for retail inflation. But, inflation has jumped to this surface. Analysts and rating agencies estimated it at 4.5 percent. But the actual figure has been revealed to be high.

For the next six months, people's incomes will be in jeopardy

According to a study conducted on inflation, the next six months will have an adverse effect on people's income. The survey, conducted on people living in the country's tier one, two, three and four cities, found that more than 60 per cent of people affected by the corona / lockdown would be able to control their spending in the near future. On the other hand, 6 per cent said there was a big risk to their income or employment. 3% said they would have uncertainty about their income for the next six months. The Corona / Lockdown has adversely affected the lifestyles of the poor, lower and middle class as well as the rich, according to a survey conducted by a private organization.

Government coffers flooded due to fuel price hike ...

According to the available data, after the lockdown was implemented by the Central Government in 2021, Rs. Revenue of Rs 4.5 lakh crore came from petroleum sector taxes alone. The hike in fuel prices has cost the government and oil companies Rs. 20 crore is earned. Last year, taxes on petrol and diesel contributed Rs. 4.5 lakh crore was disbursed.

Dangerous situation for economy despite relief to industries ...

The corporate sector has been given tax breaks by the government in the Corona era. Packages have been announced for various industries. Corporate sector earnings, following tax relief, have peaked in the last four years. Companies and industries have retained this revenue.

Currently they do not make new investments. Due to which the cycle of the market has also stopped. Liquidity has decreased. Employment creation has slowed. Inflation is steadily rising. Inflation is out of control. Thus, experts believe that all these issues will prove to be a threat to the economy. Revenue of Rs 4.5 lakh crore came from petroleum sector taxes alone. The hike in fuel prices has cost the government and oil companies Rs. 20 crore is earned. Last year, the tax on petrol and diesel contributed Rs. 4.5 lakh crore was disbursed.