Deloitte’s Chakravarty Says Inflation Still Above Comfort Level
Anis Chakravarty, an economist at Deloitte Haskins & Sells, comments on India’s inflation rate. The wholesale-price index rose 9.11 percent in November from a year earlier after a 9.73 percent jump in October, the government said today. The median of 25 estimates in a Bloomberg News survey was for a 9.02 percent increase.
Chakravarty spoke in a phone interview.
“The central bank’s policy making should address all its objectives in tandem and not any particular one in isolation. Inflation may have eased off a little but it is still well above policy makers’ comfort level. We still have a long way to go to see inflation at 7 percent.
‘‘I expect the central bank to pause on rates at the announcement the day after tomorrow.
‘‘The manufacturing sector, specially the small and medium segment, is facing a sustained slowdown and from a policy perspective, that needs to be addressed. This slowdown may continue until the end of this fiscal year and the central bank may consider reversing the policy stance in the first quarter of the next fiscal year.’’
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