Sigh of relief

Consumers can heave a sigh of relief as the inflation rate has dropped by one per cent in Jammu and Kashmir. Ministry of Statistics and Programme Implementation (MoSPI) has pegged inflation at 6.97 per cent. As per the data released by the MoSPI, the union territory recorded an inflation rate of 7.39 in September, which was the highest by any state or union territory. The national inflation rate in September was recorded at 4.35 per cent. As per the data, the rural inflation rate is higher in Jammu and Kashmir, which is 7.34 per cent against 6.36 in urban Jammu and Kashmir. Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices, often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods. Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline. The national inflation rate recorded by the MoSPI in the month of October is 4.48 per cent. As per data, it is for the three consecutive months J&K’s inflation rate is above 7 per cent and has been coming down in decimals since August. In August, the UT recorded an inflation rate of 7.65 per cent followed by 7.39 in September and 6.79 per cent in October. Major factors attributing to the rising costs in the state is heavy dependence on imports from other places. As per the Federation Chamber of Commerce and Industries, J&K on average imports goods and food items worth Rs 60,000crore annually from other states. So far the ever-increasing petroleum prices became a major reason for the escalating inflation in the state, given the heavy transportation costs and tough terrain. Officials said the inflation rates are expected to come down in the coming months since the central government has lowered the prices of fuel in the country. J&K is a consumer union territory which from food to clothing depends on other states. The major reason behind the rising inflation has been the increasing prices of petroleum and diesel. So now it is expected that the inflation rate might go much lower in November because of the centre’s decision to cut rates of petrol and diesel. Officials said the market checking teams are deputed across the valley to check the undue hike by traders. They say that winter is the season when shopkeepers make an undue hike in goods and eatables. So, the market checking team are deputed throughout the valley to keep a vigil on erring traders.