Measurement of Inflation in India: Issues and Associated Challenges for the Conduct of Monetary Policy
Published By: RBI on eSS | Published Date: August, 08 , 2010In India, there is a large divergence between CPI and WPI inflation trends in
the past, wide dispersion in inflation across commodity groups within WPI,
and significant volatility in headline WPI inflation under the influence of supply
shocks, the statistical limitations of prices data have received increasing
attention in the policy debates. This paper presents the key issues in the current
context, while also explaining how policy analyses relevant for the conduct of
monetary policy could yield ambiguous results if inflation data used in such
analyses have serious limitations. [Staff Studies].
Author(s): Nadhanael G V, Sitikantha Pattanaik | Posted on: Sep 08, 2010 | Views(1100) | Download (879)