Business Standard

Stick to businesses with strong pricing power in a high inflation scenario

Invest in commodity producers that are backward integrated

India remains favourite with FPIs despite a steady deterioration in macros
Web Exclusive Premium

Sanjay Kumar Singh New Delhi
When inflation rose initially, central banks dismissed it as transient. Now, however, it has become entrenched globally. Retail investors need to watch out for this risk as it could impact their stock portfolios.

Supply disruptions driving inflation   

Consumer price index (CPI) based inflation rose to a five-month high of 5.59 per cent year-on-year in December. It is still within the 2-6 per cent range that the Reserve Bank of India targets. In the United States (US), it touched a 40-year high of 7 per cent in December.

Covid-19 restrictions and lockdowns have led to production disruptions and created shortages. “Transportation bottlenecks, including

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 21 2022 | 8:29 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com