Just a few days after the FMs assurance that inflation will come down to 5% next yr, they increased cng prices. I think they have a concrete plan.
Inflate as much as they can this yr so the next yr there is no way the year on year inflation can be higher than 5%.
The UPA govt which includes Congress(Indira/Sonia), DMK, Tinamul from inside and Samajwadi, BSP, RJD etc from outside seems to have partially decontrolled the price of petrol and increased prices of diesel, lpg and kerosene (which they will not implement now)(have to protect their flock of black marketeers).
Following the price-hike,Delhi petrol will get costly by Rs 3.50 per litre, diesel by Rs 2 per litre, kerosene by Rs 3 per litre while LPG will be hiked to Rs 35 per cylinder. Worst hit will be the Banglorians and Mumbaikars.
Will this sort out the problems of the bleeding psus like ONGC, IOC, HP, BP? I seriously doubt that cause come election time they will throw this policy in the dustbin for good old old style politics of populism.
There is no talk about decreasing taxes that are as high as 52%, and amongst the highest in the world or increasing PSU efficiency by stopping political interference. There will be a cascading effect on essentials and pretty much every commodity.
Worst sufferers will be the unorganized labor, pensioners the retirees and the savers followed by the middle class.