Tomorrow on 8th of June 2022 the MPC of RBI would announce the monetary policy for India and it is expected that the interest rates would be increased by around 50 basis points in response to the rising inflation. It should be noted that inflation in the Indian economy has been rising for many months and there is no indication of it falling in the next few months. These realities have forced RBI to reconsider its accommodative monetary policy which was aimed at supporting growth in the economy which has been hit hard by the Coronavirus pandemic.It must be noted that today inflation is not a local issue altogether. Rather if it said that no economic activity across the globe remains a local activity but a global activity in the globalized markets and financial integration. Today the whole world is under tremendous pressure of rising inflation. This has been caused by many factors. Some factors are global in nature and some are local. However it must be noted that rising food inflation has been the largest contributor in overall inflation across the globe.





