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Rising inflation in India could become a ‘pain point’ for the economy

Mount Equity Group Tokyo, Japan > News > Markets > Rising inflation in India could become a ‘pain point’ for the economy

A pedestrian speaks on a mobile phone as he watches a digital screen relaying the budget speech by Indian Finance Minister Nirmala Sitharaman on the facade of the Bombay Stock Exchange (BSE) in Mumbai on February 1, 2021.

PUNIT PARANJPE | AFP via Getty Images

Surging inflation will continue to be a significant “pain-point” for India’s economy as the country battles a third wave of Covid-19 infections, according to one economist.

Rising prices have been a concern for India for over three years now, said Charu Chanana, lead economist for Asia at Continuum Economics, an independent research firm.

In the first quarter, “we actually do see inflation getting above the 6% level — which is at the upper limit of the RBI central bank,” she told CNBC’s “Squawk Box Asia” on Tuesday, referring to the Reserve Bank of India.

“The omicron wave suggests further challenges. In all of the previous Covid-19 waves, we’ve seen significant supply chain…

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