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Indians spent Rs 5.8L crore extra due to inflation in last 3 years NEW DELHI: For long inflation has been known to be a tax on poor. A new study shows just how much of a tax it has been in the last three years — Rs 5.8 lakh crore. Thats the additional amount Indian consumers have had to spend between 2008-09 and 2010-11 just because of the spike in prices of most commodities, particularly essential items such as milk and eggs. This translates into an annual additional outgo from household budgets of Rs 1.9 lakh crore, 35% higher than the Rs 1.4 lakh crore the government has provided for subsidies — food, fertilizer, oil and interest — for the current financial year. Its even Rs 15,000 crore higher than the Comptroller & Auditor Generals estimate of the revenue lost thanks to the 2G spectrum scam. Between 2008-09 and 2010-11, if prices of goods and services had continued to increase at 5% (the average annual inflation for the preceding three years) instead of the average 8%, expenditure of households would have been lesser by nearly Rs 5.8 lakh crore, a study by rating agency Crisil said. It pointed out that among the 316 goods that have registered a sharp rise in prices, 36 are raw food products, while another 14 were fuel items. For instance, milk prices have trebled during the last two years, most fruits and vegetables have witnessed double-digit price increase, while prices of egg, meat and fish rose 23.6% in 2010-11. Back |
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