Village Voice News

India has learned to deal with reforms, but the fight against inflation is far from over: CEA Nageswaran

<p>The struggle against inflation is still ongoing, according to Chief Economic Advisor (CEA) V Anantha Nageswaran, who said on Wednesday that supply side limitations may persist around the world.</p>
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<p>He went on to say that maybe India has figured out how to handle it via reforms, which are starting to show results.</p>
<p>CEA Nageswaran gave a speech at a Delhi School of Economics function.</p>
<p>“Our battle against inflation is far from over. The planet we live in is going to have limited resources. Maybe we’ve figured out how to control inflation if 2022 and 2023 prove to be any indication. Supply-side changes will start to show results, according to Nageswaran.</p>
<p>According to him, inflation is significant because it affects households’ social stability.</p>
<p>“Unlike China, India’s growth spurts have been sprints rather than marathons due to supply side constraints,” he said.</p>
<p>He went on to say that policymakers should take productivity seriously since, moving forward, investors would be biased toward the Indian rupee relative to the dollar due to the return disparity.</p>
<p>According to figures given by the government, the CPI-based inflation rate for January was 5.1%.</p>
<p>Retail inflation followed November’s 5.55 percent reading to a four-month high of 5.69 percent in December 2023.</p>
<p>Additionally, according to official figures issued on Wednesday, the country’s wholesale inflation rate in January was 0.27 percent. Compared to 0.73 percent the previous month, the reading was better.</p>
<p>The Monetary Policy Committee (MPC) meeting saw the RBI maintain its 5.4 percent inflation prediction for 2023–2024. The prediction was revised down from 5.2% to 5% for the fourth quarter of this year.</p>