Budget 2022: High consumer inflation rules out big demand push

Consumer price inflation has crossed RBI's comfort zone of 4%, with upper and lower margins of 2%. In fact, such a sustained rise in inflation will, sooner or later, force RBI to increase interest rates in line with its global peers, affecting the nascent economic recovery. This also gives the FM less room to announce steps to boost demand. Any extra money in hands of the common man will further push inflation.