Anil taking action against hoarders and blackmarketers is within the control of the government agencies. Genuine spike in prices, triggered by the war, is something that we have to bear with but the situation is being further compounded by unscrupulous traders.
Topical as usual Anil. Very well analysed and researched. I feel that the need to reign in inflation is the need of the hour, as one cannot justify further hardships on the lower half of the population. The inflation is also being created by traders, who usually don't let an opportunity go by, where a quick buck can be made. Remember the blackmarketing of essential drugs and oxygen during the second wave of Covid ? On the other hand most manufacturers are facing a stiff challenge to maintain their existing profit margins. This may lead to layoffs and infact we could be in a grim situation if the regulatory agencies don't step in and take effective measures.
Interesting and well timed article on growth vs inflation debate!! I feel MPC has taken the right decision as we have the inflation targeting approach. In March inflation was 6.95%, due to external factors such as supply chain disruptions, geopolitical tensions,oil and commodity price hike inflationary pressures still persist.The govt needs to adopt fiscal measures also as monetary tools not enough to control cost push inflation. We have to ensure that growth stagnation does not happen in the economy.
Superbly well articulated.
Anil taking action against hoarders and blackmarketers is within the control of the government agencies. Genuine spike in prices, triggered by the war, is something that we have to bear with but the situation is being further compounded by unscrupulous traders.
Topical as usual Anil. Very well analysed and researched. I feel that the need to reign in inflation is the need of the hour, as one cannot justify further hardships on the lower half of the population. The inflation is also being created by traders, who usually don't let an opportunity go by, where a quick buck can be made. Remember the blackmarketing of essential drugs and oxygen during the second wave of Covid ? On the other hand most manufacturers are facing a stiff challenge to maintain their existing profit margins. This may lead to layoffs and infact we could be in a grim situation if the regulatory agencies don't step in and take effective measures.
Dear Anil,
Interesting and well timed article on growth vs inflation debate!! I feel MPC has taken the right decision as we have the inflation targeting approach. In March inflation was 6.95%, due to external factors such as supply chain disruptions, geopolitical tensions,oil and commodity price hike inflationary pressures still persist.The govt needs to adopt fiscal measures also as monetary tools not enough to control cost push inflation. We have to ensure that growth stagnation does not happen in the economy.