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Riding the inflation wave

Inflation in India has clearly changed sides

Pranjul Bhandari 

Pranjul Bhandari Watching India’s inflation trends these days gets us humming The Doors’ 1967 popular single, “Break on through to the other side”. And why not? Inflation in India has clearly changed sides. From 11 per cent in the FY09 to FY11 period, it has fallen to 4.5 per cent in FY17 and is likely to average 3.6 per cent in FY18. So promising is this that the Reserve Bank of India, in its June 7 policy meeting, slashed its full year inflation forecast by a whopping 140bps, the largest cut in recent memory. What’s going on here? And how long will it last? We ran a ...

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First Published: Thu, June 15 2017. 22:42 IST
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