Rising inflation

Although it was expected that the prices of essential commodities would come down significantly with the implementation of the GST, inflation has been increasing across the country, destroying all those hopes. There were complaints that many products that had been reduced in GST were being sold at higher prices without passing the benefits on to consumers. A report by 'Kerala Kaumudi' had pointed out that companies are exploiting customers without reducing prices despite the reduction in GST on mineral water to 5 percent. The companies were charging higher prices, claiming that the rate was not unified and that the 18 percent rate was continuing.

However, as a result of our news, the GST authorities have tightened inspections and the companies that did not reduce prices have now relented. The prices of all branded bottled water that went on sale since January have been reduced by Rs 2 per litre, Rs 3 per two litres and Rs 7 per five litres. Prices of products like cars immediately came down when the Centre made adjustments by removing some GST slabs, but the prices of many other small items did not come down because there was no clarity among retailers about this. The inflation rate would not have risen so much if the authorities had tightened inspections along with the GST reduction.

It is worrying that the inflation rate is very high in Kerala at 9.49 percent while it is below three percent in all other states. The inflation rate in Kerala was 8.27 percent in November, but now it has risen to 9.49 percent. Kerala has been at the top of the list of inflation rates for more than a year. The reason for the high inflation rate in Kerala is that the prices of vegetables, fish, meat, eggs, pulses, etc. are higher than in other states. The state authorities should take immediate steps to control the rampant price hike of gold and other commodities in Kerala.

The price of chicken has increased significantly as chicken curry is the main dish in most hotels. The price was Rs 140 in October-November, but now it has increased by about Rs 40. Taking advantage of this opportunity, hoteliers and street vendors have increased the prices of food items. The lives of ordinary people will become very difficult if various departments do not intervene and carry out inspections to control this uncontrollable price increase.