Scenario Lab · Hypothetical

What if inflation remains at 6% for five years?

Hold CPI at 6% and contrast with a 4% target-consistent path.

Scenario only. Not a forecast.

Starting value

6.0%

Default rate

0% / yr

Horizon

5 years

Scenario vs baseline

Baseline end

6.0%

Scenario end

6.0%

Difference

0.0%

Midpoint (2029)

6.0%

YearScenarioBaseline
20266.0%6.0%
20276.0%6.0%
20286.0%6.0%
20296.0%6.0%
20306.0%6.0%
20316.0%6.0%

Assumptions

  • No mean reversion
  • Real rates and growth held outside the model

Formula / methodology

Level path: V_t = 6 for all t

Source metric: India Inflation

Limitations: illustrative arithmetic only; FX, policy response, and structural breaks are out of scope.