India’s inflation at 7.8%: Few links

India’s CPI inflation touched 7.8% highest since May-2014 when it touched 8.33%. The sharp rise in inflation has led to fair bit of discussion. Here are some of the articles I read and found interesting:

Jahangir Aziz of JP Morgan argues in Indian Express that RBI’s monetary policy alone will not help contain inflation.  His point is RBI’s policy brings inflation via three channels: lowering inflationary expectations, exchange rate appreciation and lowering credit growth. OF these three, lowering credit growth is the most effective but is not going to do much as credit growth has been subdued.

Prof Rajeshwari Sen Gupta of IGIDR in Times of India lines up a 4 point battle plan for RBI: Anchor inflation expectations, avoid sudden rate hikes, give credible data, restore MPC role.

Prof TT Rammohan in Business Standard says we should blame Ukraine war and not the central banks & RBI for the current spurt in inflation

Pranjul Bhandari of HSBC Securities and Capital Markets in Business Standard dissects the current inflation trend and says brace for more.



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