Take adequate, long-term exposure to equities to counter inflation

In the short term, take on part-time work and postpone discretionary expenses to cope with this round of price rise which may not end in a hurry

The current round of inflation has hit Madhu Singh, 42, an Indirapuram-based housewife, hard. “Earlier, a Rs 500 note used to suffice for my morning shopping of fruits, vegetables and a few other items. Now it doesn’t,” she says. Her lawyer husband’s earnings, too, have taken a hit amid the pandemic. With inflation gnawing away at their purchasing power, many people who live on limited budgets worry about their ability to maintain their current lifestyle.   

Broad-based, persistent inflation

At 6.3 per cent, the May number for consumer price index (CPI)-based inflation came in as a shock. “There was a supply shock.