Inflation management: Time to explore an alternative paradigm
SummaryWe must protect consumers without sacrificing either economic growth or the interests of farmers
Inflation continues to be a worry for India’s government. Consumer Price Index (CPI) estimates show that it moderated to 6.8% in August from 7.4% in July. Even food inflation has come down from a high of 11.5% in July to 9.94% in August, even though it’s still too high. The dip is primarily a result of moderation in vegetable price inflation, which has declined from 37.4% in July to 26.1% in August. However, two major food categories, cereals and pulses, continue to show double-digit inflation. There is unlikely to be a downward trend in both these, given the domestic as well as international price situation.