Nomura's Varma Sees Indian Inflation Rising Above 5%

The transcript discusses the unexpected rise in inflation due to unseasonal rains affecting vegetable prices. It predicts inflation will exceed 5% in the short term but suggests moderation in early 2018. Key concerns include oil prices, economic recovery, and food inflation. The Indian economy is described as supply-constrained, with potential growth declining due to reduced investment. However, a cyclical recovery is anticipated, with inflation risks leaning more towards the upside unless oil prices correct significantly.

What factors are contributing to the increase in vegetable prices as mentioned in the text?

What are the three key concerns regarding inflation mentioned in the text?

What does the speaker suggest about the potential for low inflation in the future?

How has the Indian economy's potential growth changed in the last 5-6 years according to the text?

What is the speaker's view on the chances of inflation being on the upside versus the downside?