Runaway prices at a time of falling demand and growth leave the government and RBI befuddled. Is inflation here to stay?
Inflation is back as a hot-button topic. Prices of a range of essential items continue to defy gravity, adding to the pain and misery unleashed by the COVID-19 pandemic. What makes matters worse is that while goods and services are becoming more expensive, economic growth is nowhere to be seen, which means our pockets aren’t getting any deeper.
In May, retail inflation as measured by the Consumer Price Index grew to 6.3% from 4.3% the previous month. The Wholesale Price Index, on the other hand, scaled to 12.94% from 10.5% in April. This level of retail inflation is now above …
Advait is a financial journalist and a former writer at The Morning Context. Here, he wrote on India’s banks, the wider financial services industry and the fintech ecosystem. He has previously worked with the Economic and Political Weekly, Business Standard, BloombergQuint and MediaNama, where he covered everything from the Reserve Bank of India to fintech policy.
Writer
advait@mailtmc.com
Mumbai