The Hindu Business Line : Inflation and poverty

This has reference to the editorial “Inflation and the poverty line” (Business Line, May 6). The high inflation of 7.57 per cent neutralises the benefits of economic growth and it is difficult to bring people below the poverty line out of the vicious cycle of poverty.

In 1993-94, the percentage of people below the poverty line was 36 per cent which declined to 33.2 per cent in 1999-2000, and further declined to 27.9 per cent by the first five years of the century.

Improved employment generation, low food prices and higher real incomes of casual labour would lead to reduction in poverty.

Long-term inflation, particularly in food articles, will exclude the masses from growth process.

More people become poor and the poor become poorer.

T. V. Jayaprakash Palakkad

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