Inflation: Who are the soft targets and how it is handled by Government.

I can’t find myself in a good mood when writing on inflation because it’s really now started to hit me personally as well, the middle class person is the soft target for the inflation today.

Do we really know what kind of inflation we are facing this year, the inflation is only led by food prices and what RBI wants to do is rising the interest rates, I am really clueless??? How can central bank control food inflation by increasing bank rates and adjusting other monetary policies?

I just want to explain how the measures taken by RBI will only worsen the effect on general public, now we are facing food inflation and government all around India I.e. Delhi is increasing the taxes (on the name of Commonwealth games and developments), Government in center has increased the Fuel price which again has increased the price of each and every thing, and now RBI has increased the bank rate it means the interest on loans will be more, so you already have less money now central bank makes it even lesser and due to this the credit for private sector will be higher so they will not think of much growth projects, it directly impacts general public working with private company will get lesser appraisals.

It means you have to pay more for each and everything and will get less growth in your income, it means the expenses are increasing by 100% and income is increasing with mere 10%. A common man is pressed by government from both sides.