Tag: Global economy

India is experiencing some strange times. RBI expects inflation to average 6.7% in 2022-23, marking the second time in three years that inflation would exceed 6%. However, overall demand has remained low. The rise of inflation is not the main issue. The repo rate has been lifted by the RBI's monetary policy committee by 1.4 percentage points, to 5.4%, since May in an effort to curb inflation's virtuous cycle. While inflation has moderated in recent months, a reversal of trend is yet possible. On August 26th, a barrel of crude oil in India cost $99.6 per unit. Food grain prices may also be affected by changes in the rainfall pattern. The area planted with paddy and pulses fell by 6% and 5% on August 26. After a poor first half, August saw a dramatic increase in net inflows of about $7 bi...