ISB Professor Urges Inflation Control as Wholesale Inflation Hits 11.39%
Indian School of Business professor Prasanna Tantri has urged policymakers to prioritise inflation control over defending the rupee against the US dollar, warning that rising prices could become entrenched in the economy. His remarks came as India’s wholesale price inflation climbed to 11.39% in September 2026, up from 9.92% in August, while retail inflation rose to 5.54%.
Tantri cautioned that delayed action could make inflation more difficult and costly to control, as rising prices feed into wages, rents and school fees. He called for an end to negative real interest rates and emphasised the need for forward-looking monetary policy, warning that waiting for inflation to worsen could lead to a more painful economic adjustment.
Meanwhile, Prime Minister’s Economic Advisory Council member Sanjeev Sanyal warned against sacrificing macroeconomic stability for faster growth. While the International Monetary Fund raised India’s 2026–27 growth forecast to 7%, Sanyal cautioned that significantly higher growth under current conditions could push inflation beyond the Reserve Bank of India’s 6% upper tolerance limit. He urged policymakers to prioritise long-term economic stability over short-term growth targets.
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