New Delhi, July 15
India’s retail inflation during the last 11 years is averaging at around 5 per cent -- with a steady decline in recent months to touch an over 6-year low of 2.1 per cent in June this year.
The Finance Ministry figures show that the average inflation under Prime Minister Narendra Modi’s tenure stands at 5.1 per cent, compared to 8.1 per cent in the UPA regime.
During the UPA era, between January 2012 and April 2014, retail inflation was over 9 per cent for 22 out of 28 months, as per the official data.
In the UPA’s final three-year stint (2011–2014), India was saddled with an average retail inflation of 9.8 per cent even at a time when global inflation was relatively stable, hovering between 4–5 per cent, the official pointed out.
In stark contrast, the PM Modi government has kept retail inflation mostly under 5 per cent, never letting it exceed 8 per cent.
The decline in inflation eases the cost of living for people, leaving more money in their hands to spend on other goods. Apart from leading to a higher standard of living this increased demand for industrial goods leads to an acceleration in economic growth and creation of more jobs.