Economy Struggles with 22-Month High Inflation Crisis

High inflation, characterized by rates exceeding 15%, has been a persistent issue for the past 22 months. The period from April to June has shown a distinct pattern of increased government spending and fiscal deficits, contributing to the ongoing inflationary pressures.

High inflation, typically defined as anything above 15%, has significant economic implications. It erodes the purchasing power of consumers, leading to higher costs of living and reduced savings. The current prolonged period of high inflation, lasting for 22 months, has put a strain on households and businesses alike.

During the April to June quarter, there is a noticeable uptick in government expenditures and fiscal deficits. This trend can further exacerbate inflationary pressures, as increased government spending injects more money into the economy, potentially fueling demand-pull inflation.

The persistence of high inflation for nearly two years, coupled with elevated government spending and fiscal deficits, underscores the challenges faced by the economy. It is crucial for policymakers to implement measures to address inflation and ensure sustainable economic growth in the long run.