Prime Minister Manmohan Singh on Friday accepted that price rise could be a factor in people turning against the Congress Party in the recently held assembly elections. The Congress Party suffered a four-zero defeat in state polls.
India has witnessed persistently high inflation, especially a sharp rise in food prices over the last couple of years. Headline inflation is at a 14-month high, while retail inflation is in double digits.
(Also read: UPA highlights economic growth but silent on price rise)
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Dr Singh said a spike in international commodity and energy prices contributed to inflation and these facts made difficult for the government to control price rise.
However, the government has taken enough measures to protect weaker sections of society from price rise, the PM noted.
Earlier, in his speech, Dr Singh said the sharp rise in food prices could be fallout of the government's socially focused growth approach.
"We should remember those who produce food, gain from high prices. Our inclusive polices have put more money in the hands of the weaker section," the PM noted.
Dr Singh also sought to blame states for high food prices. He said, "There is a need to increase supplies, marketing arrangements and logistics. This is especially important for perishable items. Much of this lies in the domain of states."
However, the prime minister contended that the Food Security Bill will shield the common man from high food prices to some extent.
The PM said recent steps taken by the government to address domestic constraints are coming into play and India's growth momentum will revive soon. His comments come at a time when India's economy is growing at the slowest pace in a decade.
Dr Singh acknowledged the sharp slowdown in domestic economy, but underscored the fact that the slowdown had hit all emerging economies.
"Even if we include the years of slowdown, the rate of growth in the last nine years is the highest for any nine year period," the prime minister said
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