Gear up to mitigate cost-push inflation
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Last Updated: May 12, 2021, 11:28 PM IST
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Synopsis
A global rally in commodity prices is upon us, as economies from the US to China take the infrastructure road to recovery from Covid-19. The pressure for cost-push inflation can be mitigated to some extent, by rationalising taxes on key inputs.
There is solid and welcome hardening of demand for building materials and key commodities. Notice that cement demand is projected to go up 20% this fiscal by rating agency ICRA; iron ore prices have actually grown three-fold in a year. Global oil prices are also on the rise. Recovery is good, inflation is not.