Falling commodity prices may soften inflation, but it may remain elevated

Parliament likely to discuss the matter today; MPC to consider matter at 3-day meet that begins on Wednesday

Across the world, countries are fighting to contain inflation, even if this means some compression in demand and slowdown in economic growth. This was quite evident when the US Federal Reserve raised its benchmark interest rate by 75 basis points (bps) last week to contain a four-decade-high inflation rate. India is no exception.

In India, the consumer price index (CPI)-based inflation rate was over six per cent, beyond the upper tolerance limit of the monetary policy committee (MPC), for the six month in a row in June. And Parliament is likely to take up the issue on Monday. The MPC