The Russia-Ukraine war has lasted almost 100 days and has impacted Indian economy, markets, domestic currency.
Indian economy has been hamstrung by the ongoing Russia-Ukraine crisis as experts are of the opinion that inflation will be a persistent issue for a while.
While Chief Economic Adviser (CEA) V Anantha Nageswara Rao acknowledged heightened inflation, he did not give any hint of stagflation, according to news agency Reuters. Stagflation occurs when a country’s economic growth slows, demand falters and unemployment rises despite rise in inflation.
Foreign portfolio investors (FPIs) have pulled out over Rs 1 lakh crore from the Indian markets in the three months since the Russia-Ukraine stalemate began.
Rupee depreciated ~4 per cent from 77.53 on February 24 against the US dollar to 77.7 against the dollar on May 31. February 24 was when the war between Russia and Ukraine began.
Prices of commodities like vanaspati oil, wheat, mustard oil, sugar, masoor dal and arhar dal were also impacted adversely.
Vanaspati oil on May 31, 2022 was 26.6 per cent costlier than the same day in 2021 whereas wheat was 14.3 per cent higher.
Prices of masoor dal were 11.6 per cent higher on May 31 this year compared to the previous year.
Arhar dal prices, however, went down by 5.2 per cent on May 31 this year compared to the previous year.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today