High inflation is one of the major concerns raised by the Bharatiya Janata Party in its Lok Sabha election campaign, but official data show that retail inflation has by and large been lower in the Congress-ruled States than in the BJP-governed States.
Haryana has the lowest retail rate followed by Punjab, Goa, Maharashtra and Kerala. Gujarat is at the sixth position.
The average retail inflation in Haryana since January 2012 is 8.22 per cent. The all-India retail inflation average in the same period is 9.77 per cent. The Central Statistics Office started releasing monthly consumer price inflation data only January 2012 onwards.
The latest data, available for February 2014, shows Tamil Nadu is the lowest retail inflation State with 6.42 per cent, followed by Maharashtra at 6.6 per cent and Punjab 6.69 per cent. Again, Gujarat is at the sixth position with retail inflation of 7.48 per cent in February 2014. The other States that performed better at managing inflation are Haryana (7.2 per cent) and Rajasthan (7.46 per cent).
The pecking order on inflation management assumes significance since the BJP’s prime ministerial candidate, Narendra Modi, has been running a campaign against the UPA government on the issue.
On Thursday, addressing a rally in Gumla, Jharkhand, Mr. Modi said: “In 2004, 2009 and now again in 2014, the Congress said they would reduce inflation. Have they done it? I appeal to the Election Commission it must take affidavits from candidates, make rules...ask how many promises made in the manifestos were fulfilled.”
Mr. Modi also called the Congress’s manifesto a “book of lies.”
In its manifesto released on Wednesday, the Congress said: “We will continue to take firm action to control inflation even in a difficult global economic scenario.”
Union Finance Minister P. Chidambaram had said at the Delhi Economics Conclave in December 2013: “The answer to inflation is to increase supplies and transform the manner in which commodities and food articles are stored, transported, distributed and sold... deal wisely with harvesting and marketing and deal strictly with hoarding and profiteering… Laws in this behalf are entirely in the domain of the State government... I think it is necessary to highlight the inaction of the State governments, even while accepting that the Central government must do all it can, within its powers, to moderate inflation.”
The States can rein in inflation with the Agricultural Produce Markets Act and the Essential Commodities Act. The powers of notification and enforcement under these Acts are with the State governments.
