Inflation may spoil India’s recovery story once again

While inflation is expected to remain within the RBI’s target range of 2-6 per cent for a third straight month, experts are worried that higher inflationary pressure on citizens may disrupt India’s economic recovery in the coming months. 

Inflation may spoil India’s recovery story once again as it probably rose due to higher food and fuel prices in February. While inflation is expected to remain within the Reserve Bank of India's (RBI) target range of 2-6 per cent for a third straight month, experts are worried that higher inflationary pressure on citizens may disrupt India’s economic recovery in the coming months. A Reuters poll of over 50 economists indicated that retail inflation climbed to 4.83 per cent in February from 4.06 per cent a month ago. If the prediction proves accurate, it will be a sharp jump in inflation. It may be noted that inflation in India had been falling since November 2020.