Tag
#Cpi Inflation
Does Inflation Targeting Work in India? Explained
Inflation Targeting, which is a decade-old framework for India (4% CPI), is facing difficulties due to a flat Phillips curve, unanchored expectations, and supply shocks. Rate increases could negatively impact growth without reducing inflation. Future actions should include monetary policies and supply-side measures, better communication, fiscal coordination, and India-specific models.
Why inflation is rising in India? Causes & Impact Explained
In India, the WPI inflation rate has shot up to 9.87% in June 2026 due to factors including a rise in prices of fuels, manufacturing costs, and a weak monsoon causing food inflation. This particular event has brought out the importance of implementing supply-side measures, climate-friendly farming techniques, fuel taxation policy, energy security, and macroeconomic measures.