The inflation devil returned to haunt the government struggling to steer the country towards a high growth trajectory, but most of all higher prices of edibles ranging from egg to milk and fruits to onions in 2010 ruined even the most unrefined palate.
The severity of inflation could be gauged only when the prices of onion, which shot up to Rs 70-80 a kg, is juxtaposed with the average daily wages of India's nearly 300 million informal sector workers -- Rs 100.
Though statistically, onion and garlic prices account for only a small percentage of total inflation (0.177 and 0.06 per cent), the question roiling the common man would be -- what is the use of declining inflation numbers, if one cannot get a commodity as essential as onion at an affordable price.
Prices of some bulb vegetables -- onion and garlic -- went through the roof towards the end of 2010, spoiling all the gung-ho about moderating inflation and self-pat on the back by the government for controlling prices.
Incidentally, the news of onion prices skyrocketing to Rs 70-80 a kg in retail markets came at a time when the prime minister exuded confidence that inflation will come down to 5.5 per cent by March end from 7.48 per cent in November.
Onions turned extremely costlier due to damage of crops in Maharashtra because of unseasonal rains and hoarding. With government swinging into action by banning onion exports and removing customs and countervailing duties on the commodity, the prices calmed down to Rs 40-50 a kg, but garlic prices flared up and are ruling at about Rs 300 a kg.
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