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Are the markets ignoring the possibility of higher inflation?

Globally, too, sticky inflation seems to be a cause for concern. Last week, two Federal Reserve (US Fed) officials suggested that the US central bank may need to keep interest rates elevated ahead

Illustration: Binay Sinha
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Illustration: Binay Sinha

Puneet Wadhwa New Delhi
Elevated food price-led inflation could become a sore point for markets going ahead, which they seem to be ignoring at the current levels, said analysts. Retail inflation in India – as measured by the consumer price index (CPI) – came in at a three-month high of 6.52 per cent in January 2023 as compared to 5.72 per cent in December and 5.88 per cent in November 2022.

The inflation print for February, according to Madan Sabnavis, chief economist at Bank of Baroda, will be critical for the Reserve Bank of India's (RBI's) monetary policy committee (MPC) because if it remains

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First Published: Feb 20 2023 | 3:01 PM IST

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