Inflation has emerged as a major cause for worry in recent months. The wholesale price index (WPI)-based inflation rose to a four-month high of 14.6 per cent in March. It has been in double digits for 12 straight months now. Retail inflation rose to 6.95 per cent in March, the highest in 17 months. Such high levels of inflation will impact retail investors’ portfolios in myriad ways.
High and sticky inflation
During the coronavirus (Covid-19) pandemic, the capital expenditure that many commodity producers, like mining companies, were undertaking came to a halt. Supply chains got disrupted. In countries like the