New Delhi, Jan. 19 -- The classical economic theory of high inflation leading to the gross domestic product (GDP) growth will not be applicable to India even if the retail inflation has touched 7.35 per cent, since the price rise is led by highly volatile food and vegetables and is a short-term spike.

"The current inflation is temporary, led by vegetables, as the difference between core and current inflation is almost 3.7 per cent. The inflation in January could have come down to 6 per cent. Thus, we should not be relating the headline inflation with growth. It's a short-term spike and would not lead to growth. It's a temporary phenomena", N.R. Bhanumurthy, Senior Professor at the National Institute of Public Finance and Policy, told IAN...