Relying on the base effect. But, will it work?

 "Inflation readings in the United States have shot up in recent months," wrote Prof Raghuram Rajan. "Yet, at the time of this writing, the yield on ten-year Treasury bonds is 1.24%, well below the ten-year breakeven inflation rate of 2.4%." "One common factor driving up both stock and bond prices (thus lowering bond yields) could be asset managers' search for yield, owing to conditions created by extremely accommodative monetary policies." Which is quantitative easing (QE) by the US Federal Reserve. QE is "large-scale purchases of financial assets, like government and corporate bonds and even stocks. This relatively simple decision triggers powerful outcomes: The amount of money circulating in an economy increases, which helps lower longer term interest rates. This lowers the cost of borrowing, which spurs economic growth," Forbes. However, QE may cause inflation, asset price bubbles and income inequality. In the UK, "public debt as a share of GDP, excluding public sector banks, was 2.218 trillion pounds or 99.7% of GDP in June, its highest since March 1961," Reuters. "However, debt servicing costs as a share of GDP remain low by historic standards", and the average maturity for the debt is 15 years. But, actually a lot of that debt is short term. "When the central bank hoovers up five-year government debt from the market in a monthly bond-buying programme, it finances those purchases by borrowing overnight reserves from commercial banks on which it pays interest (also termed 'interest on excess reserves')," wrote Rajan. This is how QE shortens government debt maturity, which is camouflaged when calculating the average by a few long-dated bonds. The US Federal debt or the total public debt is $28.13 trillion, Federal Reserve Bank of St Louis (FRED). Which means, it reached 127.65% of GDP in the first quarter of this year, FRED. "If government debt is around 125% of GDP, every percentage-point increase in interest rates translates into a 1.25 percentage-point increase in the annual fiscal deficit as a share of GDP. That is nothing to shrug at." India is a high-inflation economy. The consumer price index (CPI) rose by 6.26% in June, a shade lower than 6.30% in May, The Indian Express (TIE). Wholesale price index (WPI) rose by 12.07% in June, partly due to the base effect of -1.81% in June 2020, but also due to the enormous increase in the prices of petrol and diesel and of manufactured goods, TIE. In March, the government and the Reserve Bank (RBI) agreed to "retain the bank's (CPI) inflation target at 2%-6% for the next five years", Reuters. But, retail inflation is higher than the RBI's target. "The dominant narrative is as follows: High inflation is being driven by temporary factors which will fizzle out soon," wrote Pranjul Bhandari. Taking various drivers of inflation into account, "All said, we expect consumer price inflation to average an above target 5.4% year-on-year in 2021-22 with food inflation around 4% and core inflation close to 6%." While central banks in the US and Europe will not be in a hurry to raise rates "some others, including those of Brazil, Mexico, Russia and parts of Central and Eastern Europe have already started tightening." "Prices tend to exhibit downward rigidity in India, and reverse only partially when the economy unlocks," wrote Sonal Verma Aurodeep Nandi. "The cumulative build-up of cost pressures, including raw materials and logistics costs, is leading companies to pass more of the costs to consumers." More than 60% of the cost of petrol and diesel is due to increases in central and state taxes, News18. Even, cooking oils are not spared. Palm oil has a duty of 32.5% on imports, while "crude soybean and soyoil are taxed at 35%, DH. Since rise in prices is calculated in relation to the previous year's prices, it is possible they think that next year's increases will seem negligible compared to the huge increases of this year and they will be able to bluff their way to victory in next year's assembly elections, especially in UP (wikipedia). Are the people so stupid? Hope not.