With the seventh phase of polling in Uttar Pradesh, the election process of five states, which has been going on for nearly two months, is almost complete. With this, the Modi government at the Center, which has been busy in the election campaign, will get full time to improve the economy. A lot has changed on the economy front in these two months. Rising prices of food items from oil are posing a big challenge before the government. Let us know on which fronts the government is going to be challenged.
1- Expensive crude oil
This year, the Economic Survey had projected crude oil prices to be $ 70-75 per barrel. But this conjecture has been proved wrong. On March 7, the price of crude oil crossed $ 139. However, late at night it came down to $ 123 a barrel. There has been no change in the prices of petrol and diesel since November 4.
Petrol-diesel prices may increase by up to Rs 20, gold and shine
According to experts, at present, the prices of petrol and diesel are very low according to the current prices of crude. In such a situation, the government can take a decision to increase the prices of petrol and diesel. If this happens, there will be an increase in both inflation and inflation expectations.
2- Commodity pressure
The continuous increase in crude oil prices is also affecting other major commodities. Their prices are increasing continuously. The Bloomberg Commodity Index (BCOM) was at 132.37 points on March 7 at around 5 pm. This is the highest level since July 7, 2014. It has increased by 17 points since February 24. On this day Russia started military action on Ukraine. Experts say that this rise in commodity prices cannot be easily controlled.
3- Wholesale Inflation