Opinion | India’s inflation outlook isn’t as benign as it may seem4 min read 05 Aug 2020, 08:28 PM IST
Inflationary risks amid India’s covid crisis are hard to assess but they must not be underestimated
How would covid, which has driven commodity and oil prices lower and deeply affected the labour market, affect inflation? One would expect inflation to be well within limits, if not actually slip into the deflationary zone. Yet, India’s inflation numbers for June suggest that it has breached the upper tolerance limit of 6% set out by the Reserve Bank of India (RBI).
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