India Needs to Contain Inflation

Just a month after a landslide election win India’s new government finds itself having to take immediate action to fulfill a pledge to contain inflation.

With data this week showing wholesale price inflation at five-month highs, the government on Tuesday imposed restrictions on some farm commodities and ordered a crackdown on hording in a bid to contain rising food prices.

The steps are necessary to stop inflation from getting out of control, analysts say. The danger for Prime Minister Narendra Modi, they say, is to ensure the measures don’t conflict with the long-term goal of boosting investment into a sluggish Indian economy.

CNBC

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