Context: Rising prices no longer seem transitory. RBI would have to stop being so dovish, and Centre should try offering fuel-tax relief.
Inflationary pressure: Consumer Price Index (CPI) breaching mandated 6% margin for a second consecutive month, at 6.3% in May and 6.26% in June.
Factors causing inflation
Risks associated with higher inflation
Way forward: India’s fiscal and monetary authorities must both work in tandem