India is now the global coronavirus hotspot, with cases rising at more than 300,000 daily.
The world s worst Covid-19 outbreak in India risks fanning price pressures, threatening to limit options for the inflation-focused central bank to support the economy. State-wise curbs to stem the virus are disrupting domestic supply chains, risking higher prices for everything from essential drugs to cars. A recent weakening in the rupee is worsening the situation, boosting the local cost of imported oil and other raw materials for manufacturing.
While the Reserve Bank of India s looser monetary policies last year overlooked above-target inflation, further price pressure amid an expected economic recovery later this year may limit its options. Consumer price inflation is on course to test the upper limit of its 2 per cent-6 per cent target, while recent gains in wholesale prices signal more pressure to come.
Amid world’s worst Covid outbreak, rising inflation risks RBI’s monetary easing
SECTIONS
Last Updated: Apr 28, 2021, 07:17 AM IST
Share
Synopsis
Consumer price inflation is on course to test the upper limit of the its 2%-6% target
ETRetail
Related
By Anirban Nag
The world’s worst Covid-19 outbreak in India risks fanning price pressures, threatening to limit options for the inflation-focused central bank to support the economy.
Provincial curbs to stem the virus are disrupting domestic supply chains, risking higher prices for everything from essential drugs to cars. A recent weakening in the rupee is worsening the situation, boosting the local cost of imported oil and other raw materials for manufacturing.
Rising inflation in India may affect RBI s interest rates policy naveenbharat.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from naveenbharat.in Daily Mail and Mail on Sunday newspapers.
Why Modi govt has done well to maintain continuity in inflation targeting framework msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.