Inflation in India: A Chronic Problem

Abstract

While jumping inflation is certainly a disturbing trend, the increase in build-up inflation at 6 percent in the fiscal year so far clearly shows that there is still pain ahead. India now is running into the highest consumer inflation rate among all the major economies of the globe, save some of the basket case economies. The most astonishing thing is that India not just compared with Euro area, or the Americas, but also Asia, Africa and most significant the Latin American nations. Worse, as the OECD or any global chart of say The Economist, will show India has been at the top for quite some years now. Brazil, Mexico, Chile and Columbia have all battled out of the price spiral.