High inflation rate in India

High inflation rate in India

 Inflation pressures may be peaking in India, putting it on track to be the world’s fastest growing economy, according to the central bank. India’s economy is showing signs of resilience despite fears of recession and war globally, the Reserve Bank of Indiasaid in a monthlybulletin. Stronger agricultural activity and a pick-up in manufacturing and services point to a high-growth trajectory over the medium-term, it said.•If recent moderation in commodity prices and an easing of supply chain pressures continue, “the worst of the recent surge in inflation will be left behind, enabling the Indian economy to escape the global inflation trap,” the bank said.•“There are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world,” according to the bank.•India’s wholesale inflationeasedfrom a three-decade high in June due to softening in prices of raw materials including crude and edible oils.•Higher recent rainfall and an increase in sowing activity is “raising expectations that rural demand will soon catch up with urban spending and consolidate the recovery,”  the  bank said. India’s June-September monsoon rains were 13% above average as ofJuly 16, after hitting a deficit of 18% onJune 17, according to India Meteorological Department.•As for other countries, the data shows at least 100 countries doing  worse. According  to  Trading  Economics,  in  four countries, the rate of inflation was above 100 per cent. Simply put, people in these countries were on average shelling out twice as much money for the same product compared to what they paid for it last year.•At present, Lebanon faces the worst inflation rate in the world.  On  average, consumer  prices  in  the  small  West Asian country have risen by more than 200 per cent — consumers are on average paying almost three times more for commodities than they were paying in May last year.•Zimbabwe has a long history of ultra-high inflation. In November 2008, the country’s inflation rate peaked at 79.6 billion per cent month-on-month. The country has also been known to print more money, which has failed to control the country’s price surge. In 2019, Zimbabwe brought back its old currency after a decade of dollarisation.•Venezuela is followed by Turkey, where the inflation rate reached 73.5 per cent in May. Turkey’s populist leader Recep Tayyip Erdogan’s experimentation  with  economics  caused soaring inflation rates, smashed the lira and enraged the people of the country.•Meanwhile, in Sri Lanka, where the economic crisis has triggered protests across the country, the latest inflation rate was reported to be 54.6 per cent.•In its latest report, the Monetary Policy Committee — which is responsible for fixing the benchmark interest rate in India — has pointed out that the domestic outlook for inflation could remain uncertain since India’s inflation is driven by external factors.•“The tense global geopolitical situation and the consequent elevated  commodity  prices  impart  considerable uncertainty to the domestic inflation outlook,”  read  the  monetary policy statement for 2022-23, issued on 8 June.

 Inflation pressures may be peaking in India, putting it on track to be the world’s fastest growing economy, according to the central

bank. India’s economy is showing signs of resilience despite fears of recession and war globally, theReserve Bank of Indiasaid in a monthlybulletin. Stronger agricultural activity and a pick-up in manufacturing and services point to a high-growth trajectory over the medium-term, it said.•If recent moderation in commodity prices and an easing of supply chain pressures continue, “the worst of the recent surge in inflation will be left behind, enabling the Indian economy to escape the global inflation trap,” the bank said.•“There are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world,” according to the bank.•India’s wholesale inflationeasedfrom a three-decade high in June due to softening in prices of raw materials including crude and edible oils.•Higher recent rainfall and an increase in sowing activity is “raising expectations that rural demand will soon catch up with urban spending and consolidate the recovery,” the bank said. India’s June-September monsoon rains were 13% above average as ofJuly 16, after hitting a deficit of 18% onJune 17, according to India Meteorological Department.•As for other countries, the data shows at least 100 countries doing worse. According to Trading Economics, in four countries, the rate of inflation was above 100 per cent. Simply put, people in these countries were on average shelling out twice as much money for the same product compared to what they paid for it last year.•At present, Lebanon faces the worst inflation rate in the world. On average, consumer prices in the small West Asian country have risen by more than 200 per cent — consumers are on average paying almost three times more for commodities than they were paying in May last year.•Zimbabwe has a long history of ultra-high inflation. In November 2008, the country’s inflation rate peaked at 79.6 billion per cent month-on-month. The country has also been known to print more money, which has failed to control the country’s price surge. In 2019, Zimbabwe brought back its old currency after a decade of dollarisation.•Venezuela is followed by Turkey, where the inflation rate reached 73.5 per cent in May. Turkey’s populist leader Recep Tayyip Erdogan’s experimentation with economics caused soaring inflation rates, smashed the lira and enraged the people of the country.•Meanwhile, in Sri Lanka, where the economic crisis has triggered protests across the country, the latest inflation rate was reported to be 54.6 per cent.•In its latest report, the Monetary Policy Committee — which is responsible for fixing the benchmark interest rate in India — has pointed out that the domestic outlook for inflation could remain uncertain since India’s inflation is driven by external factors.•“The tense global geopolitical situation and the consequent elevated commodity prices impart considerable uncertainty to the domestic inflation outlook,” read the monetary policy statement for 2022-23, issued on 8 June.