Denouncing the railway freight tariff hike as a measure that would accelerate inflation and further affect the economy and people, Tamil Nadu Chief Minister Jayalalithaa on Friday urged the Centre to immediately withdraw the increase.
"At a time when inflation is skyrocketing due to continuous increase in the price of petroleum products, the hike in railway freight tariff by the Centre is akin to adding fuel to fire," Jayalalithaa said in a statement here.
Criticising the 'dynamic pricing policy' being followed by the Centre in classifying railway freight tariff under 'busy and lean season' categories, she said the classification was artificial and unjustified.
"Due to the hike in tariff, the price of all essential commodities and raw materials for industries like cement, coal and iron will increase."
When the cost of food products is already witnessing a continuous increase, the hike in railway tariff will have a spiraling effect and lead to further inflation, she said.