Persistent inflation hurting India's sovereign ratings: Moody's

Tags: Economy
India's sovereign ratings are constrained by persistently high inflation that is weighing on an otherwise promising economic recovery, Moody's Investors Service said in a release on Thursday.

"Recurrent inflationary pressures ... keep domestic capital costs high, erode domestic purchasing power as well as savings and lower international competitiveness," the rating agency said.

Moody's also said the supply response to inflation has been weak and the government-directed food distribution system has made worse the food supply constraints.

Without a significant increase in food output, the risk from continued inflation could limit India's growth prospects, Moody's said.


  • Peeved Akhilesh indicates family truce is a distant dream

    In the closed environs of a family-driven political party, it is unusual to witness open revolt from a young family member when the patriarch is still


Stay informed on our latest news!


Urs Schoettli

Just how useful are summits?

In the age of globalisation international summits play an increasingly ...

Zehra Naqvi

Of absolute truth & relative perception

Is there such a thing as absolute truth? Look around ...

Shona Adhikari

When art meets the artful

This week’s art news focuses on vastly different themes and ...