Revenue-oriented policies need to be reviewed to fight inflation

However, the government can review its excessive revenue-oriented policies to tackle inflation and boost domestic demand

The strengthening of the US dollar by around 12 per cent in the past six months to record levels in recent decades has caused the currencies of most other countries, barring major com­m­odity exporters, to depreciate vis-à-vis the US dollar. That, in turn, is fueling inflation in most countries dependent on imports, especially of fuel, food, and fertilisers.

The responses of various countries are different but many of them have resorted to fiscal and monetary measures to make money more expensive and scarce. In the process, the risks of decreased demand, lower capacity utilization and private investment and consequently lower growth