Govt’s wrong policies, inept management led to inflation: Chidambaram

The Congress has accused the Narendra Modi government of wrong polices and inept economic management that resulted in soaring inflation amid the pandemic. The party demanded that the GST rates on certain items be slashed and pre-emptive measures be put in place to cushion people from any possible economic woes related to the Covid pandemic’s third wave. Addressing a press conference  in New Delhi on Tuesday, former finance minister and party leader P Chidambaram said, “This inflation has not been caused by a spurt in demand. On the contrary, private consumer demand is low. This inflation has not been caused by excess liquidity or too much money in the hands of the people. This inflation has been caused by the wrong policies of the government and its inept management of the economy.”

He said consumer price inflation has breached the upper limit of 6% while core inflation has moved up in a month from 5.5% to 5.8%. Reading out the inflation rates on pulses (10.01%), fruits (11.82%), oil and fats (34.78%), Chidambaram said, “Will the government please tell the people what they should eat, how they should light their homes and how they should go to work?” Chidambaram and the party's   chief spokesperson Randeep Surjewala hit out at Prime Minister Narendra Modi and said the government’s pre-emptive action for the pandemic’s third wave should not just include ramping up oxygen supply or the number of Covid beds. “If the third wave comes, the economic situation will be worse. Jobs have been cut and income is reduced. In the third wave, further income cut, job losses will take place. The government must act to cushion people from the economic impact,” said Chidambaram.