Chapters in Macro & Economy
Chapter 1 of 7 · 5 min read
Growth, inflation and market regimes
The two numbers behind most macro stories, and how their combination sets the regime.
GDP growth measures how fast the economy produces; inflation (CPI, WPI) measures how fast prices rise. Together they set the policy mood: high growth with low inflation is supportive; slow growth with high inflation (stagflation) is the hardest.
Key Indian releases
- CPI inflation (MOSPI), the RBI's target variable.
- IIP and PMI: factory and services momentum.
- GDP: quarterly output growth.
- GST collections and trade data: demand and external balance.
Regimes
A regime-first read asks: is growth accelerating, is inflation rising, is liquidity easing? The answer tilts which asset classes and sectors tend to do better.
Key takeaways
- Growth and inflation together define the regime.
- Surprises versus expectations move markets, not the level alone.
- Use regime as a backdrop, not a trade trigger.
Put it into practice
Open the live page on Market Intelligence and see this concept on real data.
Keep learning
- RBI, repo rate and system liquidity · Macro & Economy
Education only, not investment advice. Updated 2026-10-09.