The war on inflation: Many ways to skin a cat, but which is most effective

Reserve Bank of India (RBI) maintained status quo in its policy rate for the third time in a row in August

Inflation is a subject that can drive dry central bankers to become droll. “As is often the case, we are navigating by the stars under cloudy skies,” said Jerome Powell, the United States Federal Reserve Chair, on August 25, suggesting interest rates could increase further.

It is also a subject that can see different approaches.
 

On the day Powell became poetic, Indian Finance Minister Nirmala Sitharaman said inflation was critical to economic growth, but an over-reliance on interest rates, without managing the supply side, would not be a complete solution.
 

True to her word, Sitharaman and others in the government have