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Rising Covid-19 infections may hit RBI's inflation maths, say experts

Consumer price index (CPI)-based inflation rose to 5.52 per cent in March, from 5.03 per cent in February. Core inflation was at 5.7 per cent.

economy, growth, gdp, coronavirus, inflation
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The underlying assumption is that the RBI may not be able to sustain its accommodative stance for long | Illustration by Binay Sinha

Anup Roy Mumbai
Rising Covid infections will hurt economic growth and push up inflation set off by lockdowns, warn economists. It is a catch-22 situation for the Reserve Bank of India (RBI). It will have to maintain its accommodative stance to buttress growth. It will also have to keep inflation in check.

Consumer price index (CPI)-based inflation rose to 5.52 per cent in March, from 5.03 per cent in February. Core inflation was at 5.7 per cent.

Bond yields, though, have started pricing in some of that sticky inflation. However, the 10-year bond yield has remained low and stable as the central bank is targeting

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First Published: Apr 14 2021 | 6:10 AM IST

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