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Rising inflation may impede pace of recovery: OECD

With inflationary pressures building up at the initial stages of recovery in the Indian economy, choosing the right time for withdrawal of the fiscal and monetary stimulus remains a major challenge for the policymakers, India’s Organisation for Economic Co-operation and Development (OECD) said today.


The report projects the wholesale price inflation at 3.5 per cent in 2009, and sharply higher at 7 per cent next year and a tad lower at 6.2 per cent the year after.

However, retail inflation, which pinches consumers the most is pegged at 7.8 per cent in 2009, a bit lower at 7.1 per cent next year and still down at 6.2 per cent in 2011.


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