India’s core inflation (minus food and fuel) surged to 7.4% during April, indicating the relentless price pressures outside food and fuel segments. Hardening inflation triggered by higher food and fuel prices has emerged as a crucial policy challenge for policymakers around the globe, prompting central banks to raise interest rates.A surge in global commodity prices and export ban on palm oil by Indonesia have also added to the problem domestically. China’s strict no Covid policy has also hurt global supplies, heightening price pressures. “We expect the RBI to raise repo rates by another 75-100 basis points in the rest of this fiscal, which implies rising cost of borrowing across all instruments. This move cannot bring down food or fuel inflation, but can help check its generalization by curbing the second-round effects,” according to a report by ratings agency Crisil.There is also an acknowledgment that some growth may have to be sacrificed in the fight against inflation.