Economic survey flags risks of imported inflation

As the economy escapes relatively unscathed from the third wave of the virus and projected to grow over 8% in FY23, the risk of inflation rearing its ugly head has become real.

The Economic Survey has flagged imported inflation as a risk due to high energy prices globally.

"The inflation in ‘fuel and power’ group of WPI was above 20 per cent reflecting higher international petroleum prices. Although the high WPI inflation is partly due to base effects that will even out, India does need to be wary of imported inflation, especially from elevated global energy prices," the Survey said.


The Survey said that the economy is well placed to take on challenges of 2022-23.

The Survey pointed out that due to benign food inflation in most of the year, the headline inflation remained in check.

"The Consumer Price Index inflation remained range bound as food prices eased considerably due to the supply management response by the Government. Food inflation remained benign during the year at 2.9 per cent (April-December) as against 9.1 per cent in the corresponding period last year," the Survey highlighted.

The survey said that wholesale inflation was high due to the base effect and will even out but supply side constraints globally are likey to put pressure on it.