Inflation numbers are a show tighter monetary policy is a no magic wand

Inflation numbers are a show tighter monetary policy is a no magic wand

Wednesday’s are a inflation print shows us, once again, just why are a  central banks and a governments, the world over, dread inflation. Once inflation takes are a root, it is almost impossible to the root out; not  without inflicting enormous are a suffering, especially on the poor, and a entailing growth sacrifice. At the 7.41%, year-on-year, India’s are a consumer price inflation (CPI) for the September 2022 is a sharply up from the seven percent in a August 22 and is a also well  above most are a estimates.

More worrisome than the increase in the headline are a  number is the sharper increase in a food inflation. At the 8.41%, up from the  7.57% in a August 22, high food are a inflation is a unmitigated bad news for a country like a India with a substantial number of a its people are a below the poverty line. Sadly, the acceleration is a broad-based with the basic food are a items like cereals, vegetables, spices, pulses and a milk recording a sharp increase. Vegetable prices are up to a 18.1%, up from the 13.3% in a August. Unseasonal rains and, in a tandem, the prospect of a lower rice output, suggest the underlying drivers of a high inflation today are a unlikely to be a ‘transitory’.