Recent comments from Steve Hanke, a professor of applied economics at Johns Hopkins University, have drawn attention to India’s monetary trends, highlighting a gap between inflation levels and the pace of money supply growth.
Data referenced by Hanke shows India’s inflation rate rising slightly from 3.2 per cent in February to 3.4 per cent in March. Over the same period, the country’s broad money supply has been expanding at an annual rate of around 15.65 per cent.
Hanke noted that this pace is above what he describes as a “golden growth rate” of roughly 10.23 per cent, which he links to inflation near India’s 4 per cent target. His view reflects a long-standing economic perspective that connects sustained money supply growth with future price pressures.
The figures come as the Reserve Bank of India continues to track inflation within its target band. While the recent increase in prices remains moderate, the contrast with faster monetary expansion forms part of the broader economic picture.
Inflation in India is influenced by a range of factors, including food prices, commodity movements and domestic demand. For now, headline inflation remains relatively contained, even as money supply growth continues at a faster pace.
Hanke’s remarks highlight the divergence between current inflation readings and underlying monetary trends, pointing to an area that may draw continued attention in the months ahead.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
