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This Article is From Nov 18, 2020

Motilal Oswal: How Long Can We Afford To Ignore Inflation? 

Motilal Oswal: How Long Can We Afford To Ignore Inflation? 
A bus conductor holds a fan of Indian rupee banknotes on a bus in Kolkata, West Bengal, India (Photographer: Sanjit Das/Bloomberg)  

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Considering the fact that the Indian economy entered its first technical recession in the past four decades (quarterly data available since the mid-1990s) in H1 FY21, the worry about inflation may seem surprising and totally unwarranted.

Equally surprising is the 77-month high headline inflation and 22-month high core inflation amid the recession.

We find it irresistible to comment on this development because of two reasons.

First, India is among the very few major nations in the world with higher inflation in October 2020 compared to December 2019 (pre-Covid-19 levels), but the rise in core inflation is also the highest among 21 major economies in the world.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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