Experts advise caution on stagflation fears amid 24% GDP contraction

Say Centre, RBI should ensure their policies don't stoke inflation

The economy seems to have hit stagflation with gross domestic product (GDP) contracting 23.9 per cent in the first quarter of the fiscal year, leading to job losses and the consumer price index (CPI) crossing the Reserve Bank of India’s (RBI’s) comfort zone of 6 per cent for the fourth month on the trot.

Economists have hence cautioned the government and the central bank, asking them to be careful about their policies not stoking inflation.

Sudipto Mundle, distinguished fellow at the National Council of Applied Economic Research (NCAER), said: “The economy has entered severe stagflation. It is a challenging task