Inflation weighs heavily on Dussehra-Diwali happiness; 100/kg tomato, no reduction in home loan EMI

New Delhi| The joy of festivals like Dussehra-Diwali is being overshadowed by inflation. During these festivals, on one hand people are troubled by the huge increase in the prices of all the items of daily use, while on the other hand, the Reserve Bank has also shown that by not making any change in the repo rate rates for the tenth consecutive time, it has said that right now the increased rates of home loans are not available. There is no possibility of getting rid of it. It is believed that the Monetary Policy Committee of the Reserve Bank has taken this decision keeping in mind the ongoing war-like situation between Israel and Iran and domestic inflation rates.

At present, the price of every item from vegetables, pulses to oil and spices remains very high. Tomatoes are being sold in the retail market for Rs 100 to Rs 120 per kg. The new potato season has arrived, but there is still no reduction in potato prices. Its prices still remain at Rs 30 to Rs 40 per kg. Prices of pulses remain at Rs 160-180 per kg. The flour has increased from Rs 35 to Rs 40 per kg. This means that it is becoming difficult for common people to arrange food for both the meals in their plates. A large part of people’s earnings is being spent on filling their stomachs and they are not able to make any savings.

To curb rising inflation, the Reserve Bank had continuously increased the repo rates to 6.50 percent in February 2023. Since then people’s EMI has increased. According to different home loan amounts, people have to pay an additional Rs 2,000 to 10,000 every month. All home loan giving banks have either increased people’s EMI per month, or increased the loan deadline from 20 years to 25 or 27 years at the same rate. This means that now they will have to pay bank EMIs at this rate for almost their entire life.

Borrowers can get rid of expensive EMIs only when the Reserve Bank of India reduces repo rates and consumer banks give people discount in interest rates. Just as there is no possibility of reduction in inflation in view of the Israel-Iran crisis, it is believed that to keep inflation under control, RBI will keep the repo rates high. But common consumers will have to bear its loss.