While consumers are worried about inflation, experts ensure that lower repo rate with a slight rise in inflation may have a positive impact on the overall economy in the long run. “There is a positive side of inflation, even though it is not good for consumers. But slight rise in inflation means the demand has also gone up. Thus, there is a chance that growing demand will lead to increase in production and supply. With the increase in production, there will be growth in employment and income also. Thus, a small rise in inflation is not bad; rather it is a sign of dynamic economy,” says Dr Sudakshina Gupta, economist and head of the department, Economics, University of Calcutta. She clarified that a slight rise in inflation is not troublesome, provided the government could handle it properly and ensure steady GDP growth as Covid impacted GDP badly.