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Inflation defeats poverty reduction plans!

	May 12, 2008

With inflation at a three-year high, it is a grim reminder to the policy makers on how the price rise hits the poor the most. If rapid economic growth can help push many people above the poverty line, inflation on this scale can viciously pull them back. National Sample Survey data show the proportion of people below the poverty line fell from 36 per cent in 1993-94 to 33.2 per cent in 1999-00, a fall of just 2.8 percentage points in a period when both growth and inflation were high. The averag ...