Price hike due to enterprises making up for losses: Economist

BENGALURU: Inflation is the expected outcome after the economy collapses as enterprises try to make good their losses incurred during the lockdown by increasing prices, Professor RS Deshpande, Visiting Professor, Institute for Social & Economic Change (ISEC) and former director, Dr B R Ambedkar School of Economics, explains.

“After the lockdown, many enterprises incurred severe losses and now, they have to make up for it. This is exactly the market situation today. The business losses are being made good by enterprises,” he said.