Inflationary Times : Trends and Road Ahead
Source: Rediff.com Just when the global economy was recovering from the COVID-19 pandemic driven economic crisis, it was struck by yet another shock in the form of Russia-Ukraine conflict that has been on-going since February 2022. This has shaken the global economic order in more ways than one. One of the most concerning impacts has been the price rise that is at a record high in most of the global economies. According to the International Monetary fund (IMF), global economy growth is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. The war led price escalation has led the inflation projection for advanced and emerging economies to be 5.7 and 8.7 per cent respectively in 2022. India is no exception in this regard and the inflation rate (Consumer Price Index) is at 7.8 per cent, the highest since 2014. The rate is way higher than the permissible limit of 6 per cent that is set by RBI. Though the global trend is driving the fuel and food in