Inflation in goods used by rich higher than those by poor: PHD Chamber of Commerce & Industry

NEW DELHI: Inflation during the current festive season is impacting the rich more than poor as the goods used by them have seen a higher price rise a report by a industry body said.

"The impact of price rise as measured by the Wholesale Price Index (WPI) is found higher on rich class at around 9.3 per cent as compared with the poor class at around 8.4 per cent," PHD Chamber of Commerce & Industry Executive Director Saurabh Sanyal said.

In the select basic items of consumption, rich class is impacted more at the rate of 9.3 per cent as compared with poor class at the rate of 8.4 per cent during the current festive season, a report by PHD Chamber of Commerce & Industry has said.

The average inflation of goods consumed by the high income group such as fruits, pulses, cashew nuts roasted, cigarette, motor vehicles, perfume and LPG stands at 9.3 per cent, it added.

While the average inflation for seven commodities mostly used by the poor like rice, potato, fodder, bidi, bicycle, toilet soap and kerosene stands at 8.4 per cent, the report said.

Inflation in India can be tackled only by easing supply side constraints and improving infrastructure at a rapid pace, which can lead to an overall development in the economy, going forward, Sanyal added.

"The government must enhance public investments in infrastructure sector especially the agri-infra in terms of supply side infrastructure i.e. farm gate to consumer doorstep supply chain management, which could effectively tackle the challenge of inflation," the report said.