New Delhi, May 21 -- India may be entering a stagflationary phase as slowing growth, persistent inflation, and widening balance-of-payments stress converge, Systematix said in its report.

The brokerage noted that the recent Rs.3 per litre fuel price hike and rising wholesale inflation could push CPI inflation toward the 6-7% range in the second half of FY27.

It added that the RBI may face increasing pressure to reverse monetary easing, while the rupee could weaken beyond the Rs.100 mark, weighing on rate-sensitive sectors such as BFSI, real estate and capital-intensive industries.

Let's understand what stagflation really means.

Stagflation represents one of the toughest economic challenges for any nation, as it combines three signific...