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The glass is half-full. Inflation at the moment may be above the upper limit of the inflation targeting framework but there is room for optimism about growth prospects for the Indian economy in 2022-23.
The inflation rate needs to fall. But analysts seem to be having second thoughts about the degree of monetary tightening that needs to happen. That is the cause for optimism about growth.
The consumer price index inflation rate touched 7.9 per cent in April followed by 7 per cent in May. In June 2022, the Monetary Policy Committee (MPC) raised its inflation forecast for 2022-23 to 6.7 per
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