Tuesday, April 10, 2012

Crisil floats new method to measure core inflation

....According to some school of economists, the core measure used by the RBI has two drawbacks: a) It is prone to volatility: it includes base metals prices, directly linked to international price movements, which are influenced by temporary shocks and b) It is less useful for gauging future demand-side pressures: it excludes processed food prices (manufactured food)......

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