 "loans, aum, assets, banks, investment, shares, stocks, funds")
The State Bank of India pays interests of 5.4 per cent and 6.20 per cent (to non-senior and senior citizens, respectively) on its 5-10 year fixed deposits (FDs). However, the consumer price index (CPI)-based inflation touched 7.34 per cent in September. If CPI inflation remains at this level, households investing in such safe instruments will end up with negative real (inflation-adjusted) returns.
The key reason for the current surge in inflation is high food prices. “There has been a sharp spike in food prices over the past 9-10 months, and that has put pressure on household expenses,” says Sriram Iyer, chief
