The government will face a belligerent Opposition when Parliament opens for the monsoon session, with inflation as the focus of its attacks.
For his part, Prime Minister Manmohan Singh has clearly pinned his hopes on a good monsoon to ease food prices. The forces of nature appear to be on the Prime Minister’s side halfway into the rainy season, but whether that will be enough to slow the rate of inflation to 6% by December isn’t clear yet.
The central bank is expected to help things along by tightening monetary policy, which may help absorb inflationary pressures such as those engendered by the freeing up of some fuel prices.
But given that the economy is in strong revival mode, it will take all the government’s nerve to stay on top of the situation and not get spooked by a twitchy inflation rate. The Opposition isn’t going to stop beating up the government on prices. That’s the Opposition’s job.