It is expected that inflation should come down towards the later part of this year. Why has inflation been so high and persisted for so long? This is the theme of my talk today. In my presentation, I propose to address the following questions: Is India an outlier among major countries in terms of recent inflation performance? Has the inflation process changed?
What are the causal factors – global and domestic as well as supply and demand? I will conclude with some thoughts on managing the inflation dynamics on the way forward. Is India an outlier in the inflation performance among major countries? It is important to appreciate the global backdrop in which we are experiencing a resurgence of inflation now.