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Indian economy is facing stagflation (sustained Inflation, low employment rate), Moody’s says

NEW DELHI: Global financial services firm Moody's on Thursday said Indian economy is facing stagflation, where growth is slow and inflation high, and cautioned that the Reserve Bank cannot be too aggressive in cutting interest rates. "India's economy is in stagflation, with notably weaker growth but inflation still stubbornly high," said Glenn Levine, senior economist, Moody's Analytics. 

Amid wholesale price-based inflation ticking up to 7.5% year-on-year in May due to supply-side factors, the agency said it will cause further 'headaches' at the RBI. 

stagflation is a situation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high.

From  http://timesofindia.indiatimes.com/business/india-business/Indian-economy-is-facing-stagflation-Moodys-says/articleshow/14137278.cms

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