Examine the phenomenon of bottleneck inflation in India—its causes, how it differs from demand-pull and cost-push inflation, and the appropriate policy mix for response. (Answer in 250 words)

Bottleneck inflation arises when specific supply constraints—ports, inputs like microchips, logistics, weather shocks, or regulatory frictions—restrict quantities, raising relative prices that can spill over into headline and even core inflation. Unlike broad demand surges, bottlenecks are narrow, sudden, and often self-limiting once the choke point eases.

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