Motilal Oswal: How Long Can We Afford To Ignore Inflation? 
A bus conductor holds a fan of Indian rupee banknotes on a bus in Kolkata, West Bengal, India (Photographer: Sanjit Das/Bloomberg)  

Motilal Oswal: How Long Can We Afford To Ignore Inflation? 

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Motilal Oswal Report

Considering the fact that the Indian economy entered its first technical recession in the past four decades (quarterly data available since the mid-1990s) in H1 FY21, the worry about inflation may seem surprising and totally unwarranted.

Equally surprising is the 77-month high headline inflation and 22-month high core inflation amid the recession.

We find it irresistible to comment on this development because of two reasons.

First, India is among the very few major nations in the world with higher inflation in October 2020 compared to December 2019 (pre-Covid-19 levels), but the rise in core inflation is also the highest among 21 major economies in the world.

Click on the attachment to read the full report:

Motilal Oswal Ecoscope Inflation.pdf

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