Govt misses annual inflation target

Despite inflicting heavy losses on the economy by keeping interest rate at a record high, the government and the central bank missed the annual inflation target of 21%, which stood at 23.4% in the just-ended fiscal year. As the unbearable inflation in fiscal year 2023-24, which ended on Sunday, was not enough, people were bracing for another round of inflation from Monday in the shape of increase in prices due to the imposition of new taxes. FrieslandCampina on Monday increased the price of its brand Olper’s milk by Rs75 per litre, or 25%. The price went up after the government imposed 18% sales tax, 4% further tax and 2.5% tax on the unregistered retailers. As against the old retail price of Rs295 per litre, the company has fixed the price at Rs370 per litre. Olper’s has a 40% market share.