Modi explains Price Rise

Prime Minister Narendra Modi has made controlling inflation a priority since taking office last month, but prospects of weak monsoon rains and turmoil in Iraq have increased the risk of rising food and fuel prices.With the Budget Session of Parliament beginning from July 7, the Centre has called for a meeting of all state food ministers on Friday (July 4) to discuss the crisis.

Among the biggest challenges before the government is to explain the reasons behind rise of rail fare, petrol and diesel prices - the latest hike was announced today. As part of its strategy, the government is likely to blame the hikes on the decisions of the previous UPA regime. The government had ordered a crackdown on hoarding on June 17 to control the rising food prices and imposed export restrictions on certain farm commodities.


India's wholesale price inflation hit a five-month high earlier this month; underscoring challenges facing the government, just weeks after it came to power. PM Modi has warned the public that "bitter medicine" was needed to put India's economy back on track, without giving details.