The IMF and the Inflation narrative

In its Art IV Consultations 2017 Press Release, the IMF considers that inflationary pressures need to be tackled - “Inflation has picked up …., but there are signs of building of inflationary pressures.”. Some of our local analysts disagree. Let us try to grasp some of the portents of our inflation narrative.

IMF Art IV Consultations 2017 Press Release: A wake-up call

(Published in L'Express)

The IMF is appreciative of the projected level of real GDP growth of 3.9% in 2017, and of the continued robust economy, but considers that “vulnerabilities are rising”, namely with regard to a) the rising public debt and high budget deficit, b) rising inflation and low interest rates, and c) the rising current account deficit, and the overvaluation of the rupee exchange rate.