Today’s world war on inflation is yielding no winners
- Price instability is a global battle that has had no victors so far and India’s own record isn’t boast-worthy
Another month, another suspenseful inflation number. India’s 6.8% rise in the Consumer Price Index (CPI) on Tuesday was lower than expected because of slower-rising vegetable prices that however still jumped 26%. The US’s August inflation number released on Wednesday, meanwhile, disrupted the cheery view that the US economy is managing to avoid a recession while inflation does the Federal Reserve’s bidding without needing more interest rate hikes. For stock markets around the world relying on this benign scenario to spin out soft landing narratives and justify higher share prices, we are at a critical juncture. The witty UBS chief strategist Bhanu Baweja has called this “Peak Goldilocks."