Inflation caused by Centre's wrong policies, inept management of economy says Chidambaram

Congress leader and former finance minister P Chidambaram on Tuesday attacked the Narendra Modi government over inflation and rising fuel prices and demanded immediate relief by reducing taxes on petroleum products and import duty on various items.

New Delhi: Inflation in the country is being caused by the wrong policies of the Central government and its inept management of the economy, said Congress leader and former finance minister P Chidambaram on Tuesday, hitting out at the Centre over the rising prices of fuel and other commodities. While addressing a press conference, Chidambaram demanded that the price of petrol, diesel and LPG be immediately reduced, and import duties reviewed. "We hold the Central government under the leadership of Prime Minister Narendra Modi directly responsible for the high inflation. It is not being caused by rising demand, rather the wrong policies of the government and its inept management of the economy," he said.

"Congress demands that the central government immediately reduce the prices of petrol, diesel and LPG. We demand that import duties be reviewed and reset so prices of essential imported goods. We also demand that GST rates be reduced on an array of goods," Chidambaram added. He further said that the party condemns the government's 'callous negligence' on the price hike issue. He also quoted the National Statistical Office's (NSO) press release that pegged the country's consumer price inflation at 6.26 per cent and said that this level of inflation amid the ongoing COVID-19 pandemic had broken the back of the people.

"The government and the RBI have sent an inflation target of 4 (+-2) per cent. Consumer price inflation has breached the upper limit of 6 per cent and is now, according to the NSO's press release yesterday, 6.26 per cent," he 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? Inflation even in a normal time would be intolerable. The present is not a normal time. A pandemic is raging in the country. Unemployment has risen to 8.1 per cent and Inflation has broken the back of the people," he said.

Petrol prices in the national capital rose to Rs 101.19 per litre on Sunday, touching another record high figure. Diesel prices, meanwhile, dipped to Rs 89.72 per litre. In Mumbai, the retail price of petrol and diesel stood at Rs 107.20 per litre and Rs 97.29 per litre respectively. Petrol prices in Bhopal soared to Rs 109.53 per litre and diesel costs Rs 98.50 per litre.

(ANI)