Click to play videoNew Delhi: Everything you buy is more expensive because inflation is on the rise once again, and you aren't the only one who doesn't like it.
"Inflation beyond a certain level, lets say four per cent or so much nicer to have it at three per cent, would be something that you do not want," says Saumitra Chaudhuri, a member of the Prime Minister's Economic Advisory Council.
So, why are the prices rising? Banks in India today are flush with funds and Indians have more money in their hands than ever before.
A growing economy means more spending power for the Indian, but the supply of the goods and services they can buy isn't keeping up with this demand.
So, what could the Government do? It could increase interest rates to cut the amount of money in the economy and it could cut address the demand-supply gap by cutting import duties.
"Tomorrow prices might soften but tomorrow is tomorrow and I want something to happen today. The Government has cut import duties in the last week of January and it might do more in the budget," says Chaudhuri.
Politicians have begun asking the Union Finance Minister P Chidambaram to send out a strong message against inflation this budget.
"There has been a very big attack on working people's budget because of the price rise and therefore, this budget must give a very strong message. The Government is on the top of this," says CPI-M leader Brinda Karat.
Chidambaram knows there's a political price to pay for inflation and he'll be working overtime to make sure the Government of the aam admi doesn't have to pay it.
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