High Food Inflation in India Requires Prolonged Tight Monetary Policy
Food and fuel prices in India have been high for a while, leading to overall inflation. A study shows that this inflation is hard to stop because it keeps affecting other prices. The study used a model to see how inflation spreads in the economy. It found that as food prices go up, other prices follow, making inflation hard to control. To fix this, the government needs to keep a close eye on prices and make changes to help the economy grow faster.