New Delhi: Inflation remains a worrying factor for common man. There are every chances of inflation hitting hard to the household budgets. The downtrend seen in inflation during January-March is vanishing. The Union Budget of 2012-13 is increasing prices of fertilizers, fuels and almost all products available in the market.

Budget’s effect is already started to be seen on food products. From eating-out in restaurants to foods cooked in the houses, all have become costly. Edible oil prices are skyrocketing. Prices of imported edible oil have been increased by Rs 6-8 per liter. Palm oil and Soya bean oil prices are expected to further rise. Almost half of the household demands are met with the help of imports. Milk is soon going to become costlier. Out of the vegetables, tomato price is hovering around the highest levels of Rs 40 per kg. Despite good production of potato and onion, the prices are not coming down. A Basmati rice price has been increased by Rs 8 per kg.

Budget’s impact on non-food items has already started to be seen in the first week itself. Due to subsidy cut on fertilisers, pesticides and hybrid seeds, prices have been increased. This is going to affect the agriculture cost and further it will be having a spiral effect on the food prices. Prices of base metals like steel, copper and aluminum are on the rise.   

With the rising raw material cost of automobiles, electronics, AC, TV and fridge, the consumer durable companies have started hiking the prices. Hike of excise duty and service tax has even impacted the prices of popular product like bicycles. Electrical appliances are also getting costlier due to the rising prices of copper, bronze and aluminum. Manufacturing sector is seeing constant decline for the past three months. Production got affected due to electricity crisis and hindrances in capacity productions. Lack of new orders has also affected the sector.

Price rise of diesel, petrol and cooking gas is already in pipeline and with its implementation, inflation is bound to see manifold increase. Road and rail transport will become dearer. Fare hike of AC class will be affecting tourism.

Hike in excise duty and service tax will be affecting all kinds of services and is one of the prime reasons for inflation.