A journalist once commuted that prices in our society are rising as regularly as the hemline of a modern lady's garments. What he means is that price-rise has been an unceasing phenomenon since the end of the second World War. Price of essential commodities goes up when there is more money in circulation in corresponding with the supply of articles and services. Thus broadly speaking, it is due to inflationary pressure. Rich men may have mania for making more money but the poor people, as Oscar Wilde has said, think only of money. So when prices of essential commodities rise, it is the common people that are more affected. For they have less purchasing power. So the phenomenon of inflation makes the poor poorer but the rich became richer as they get more money. As price index goes up, salaries of office employees go up or suitable dearness allowances are granted to cope with the market. In the meantime prices go further up as more money has come into the market. In this way a vicious circle is created. But the impact is felt pinchingly by the common people as essential commodities go beyond their reach. Indeed, commodity prices are generally linked with the staple article. If the price of rice, flour (wheat) or potato goes up, then that will push the prices of other articles further up.
So the best way to resist inflation is to increase production, both in agricultural fields and factories. India, however, presents a peculiar picture there is recession in some fields while inflation continues in many sectors. Inflation here is not invisible. Dishonest businessmen, by creating artificial scarcity of essential articles by hoarding, with the connivance of the agents of law and order, maintain the upward trend of prices. For India once presented the unique phenomenon of inflation with recession simultaneously. A section of economists apologetically holds the view that inflation is often the indication of brisk economic growth. As new avenues of investment are explored, as plan outlays increase, deficit financing and inflation are bound to take place. Under the Five Year Plan scheme, money is invested now where the yield would accurse about five years later. This is an irritant of inflation; likewise, huge amounts of uncovered expenditure in the budget and overmuch borrowing push up the price. Alongside, parallel currencies of crores of money work in the black market. So a very cautious and scrupulous planning is called for.
For the common people nutritious food articles are often forbidden. Fish markets are now scarcing. The authorities are often helpless in holding the price line, due to the machinations of vested interests. The Govt. expenses have to he curtailed ruthlessly and imports to be liberalized. The best remedial measure for common people is to organize consumers resistance movement and to check corruption. Common buyers would be politely and with cogent arguments persuaded and prevailed upon not to buy certain commodities till prices are brought down reasonably.
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