Sticky inflation ahead if fuel taxes are not rationalised: Dr SK Ghosh, SBI
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Synopsis In overall inflation numbers, the weighted contribution of fuel direct and indirect is around 1.8%. If you take out the fuel component, the headline inflation is actually lower than 5%. There is also the fact that every 10% increase in pump prices makes for a 50-bps impact on the headline CPI number.
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Dr SK Ghosh, Group Chief Eco Adviser, SBI (Photo: Twitter)
Dr SK Ghosh, Group Chief Eco Adviser, SBI, explains to ET Now s Tamanna Inamdar how fuel prices are impacting the headline inflation number. Edited excerpts:
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