To check runaway inflation, the Centre has cut excise duty on petroleum products and banned wheat exports. But inflation has been generalised in the last few months and is likely to remain sticky above RBI’s targetted cap (6%), through most of this fiscal.
Elevated global commodity prices and supply-side disruptions due to the Ukraine crisis have led to a steep rise in imported components to headline inflation.
Services inflation, till now lower than goods inflation, is expected to pick up in contact-intensive services.
