Measurement of Inflation in India: Issues and Associated Challenges for the Conduct of Monetary Policy
AbstractIn 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].
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Date of creation: Sep 2010
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supply shocks; volatality; central bank; reserve bank; RBI; statistical issues; Exchange Rate; REER; financial; economic; Inflation Measurement; Monetary policy; India; CPT; WPI; commodity; prices; data; Inflation;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-18 (All new papers)
- NEP-CBA-2010-09-18 (Central Banking)
- NEP-MAC-2010-09-18 (Macroeconomics)
- NEP-MON-2010-09-18 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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