Press Statement issued by BJP National Spokesperson and MP
Shri Prakash Javadekar

12% inflation is the testimony of the total failure of UPA government in managing the economy of the country. A continuous rising graph of prices is not an accident or a natural calamity. Omission & commission of the UPA government on the policy front has resulted in this precarious scenario. Now it is proved that “Congress ka hath, Mehangai ke sath”.

The situation has gone out of control of the Congress led UPA government and if it is not corrected immediately, India will witness stagflation. It is noteworthy that prices are rising at a rapid pace since April this year. Govt. resorted to fiscal measures to control the situation which has proved counter productive. Liquidity crunch created by rising of CRR and Repo Rate continuously has actually pushed up interest rates. Thus the measure which was supposed to control inflation and bring down the prices has pushed housing loan interest rates from 7% during NDA regime to 14% now. Besides interests rates on all other categories of loans have gone up resulting in cascading effect on inflation.

The FM declared war on cartalision in cement and steel prices, but despite his war cry prices continue to rise in this vital sector. The rise in prices of sugar is direct result of government decision not to release adequate quantum in the market though we have a stock, which is sufficient to meet the needs of the country for next 18 months. What is surprising is that the law of demand and supply are also not working. You have enough production of wheat and rice, still prices are rising. Pulses and edible oil prices are also zooming northward even though availability has increased. Govt. seems to be totally clueless.

Neglate of basic parameters and early warnings by the UPA Govt. is the real cause of present dilemma. The Prices which consumer pays is much higher than what is reflected by WPI. Inflation is the single worst failure of the UPA regime. It will have to pay heavy political price for this blunder.

BJP will continue its agitation and continue its efforts to mobilize public opinion on this vital issue.

(Shyam Jaju)
Headquarter Incharge