Consumer price inflation in India almost touched 7% in March. It is likely to climb up further as the full effect of the global shortages in crude oil, metals and farm products (like oilseeds and wheat) on the back of the Ukraine war kicks in.
Forecasters are predicting inflation rates of 7% or more for at least seven more months with a peak of around 8% in June. Wholesale price inflation that measures factory and farm gate prices looks even more grim, printing at 14.55% for March.
Why fret over a 7-8% inflation rate when the economy has seen much higher inflation rates in the past? In 2013, for instance, consumer inflation crossed 12%. For one thing, the period of high inflation in the early 2010s brought considerable agony to both households and businesses. The objective of the current inflation management policy is to ensure that we do not revisit this period in history.
In fact, the experience of the early 2010s forced a complete rethink on the ways to keep prices in check. A key outcome was the government’s decision to mandate RBI to keep CPI inflation in a range of 2-6% and ideally target the midpoint of 4%. Current inflation has busted the upper limit of this range. Does this call for urgent action by RBI?
In normal circumstances, central banks have a ready formula for taming inflation. This assumes that price increases reflect excess demand for goods and services riding on high economic growth and low unemployment. The logical response is to tamp demand down through higher interest rates.
Bu hikaye The Times of India Hyderabad dergisinin May 04, 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Times of India Hyderabad dergisinin May 04, 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Tollywood was happy hunting turf for conman
Kept Database Of Mobile Nos. Of Film Celebs
State-funded Metro to chug into RGIA in 3 yrs
Residents’ Plea To KTR To Extend Other Rail Lines
Rajiv Makhni becomes the face of smart tech luggage with proximity indicator
The VIP SmarTech series, a range of smart travel gear, keeps you connected with your luggage via your smartphone
I want to reach out to Samantha and tell her that if I can make it, so can you, says Vikram Bhatt
The filmmaker opens up about his 18-year-long battle with fibromyalgia, a chronic disorder that causes widespread muscle pain
Rain ruins second ODI
The match was reduced to 29-overs-a-side as the first interruption caused a four-hour break. India were 22 for no loss in the fifth over at that time.
Croatia come in hard, show Canada the exit
After their dour opening draw with Morocco had instigated a post-mortem into whether this Croatia side lacked a killer instinct, Kramaric and Marko Livaja found the net before the break to take the wind out of Canada’s sails.
Denmark calls on Euro 2020, Eriksen experience
Denmark has been here before.
Ronaldo targets KO berth
Win Vs Uruguay Will Help Portugal Advance With A Game To Spare
Govt doubles large aircraft wet lease period to 1 yr
Accordingly, IndiGo can now wet lease two twin aisles to operate flights between Delhi/Mumbai and Istanbul for a year.
Deuba's party emerges as single largest party in poll
Elections to the House of Representatives and seven provincial assemblies were held on November 20.