........“This trend of WPI higher than CPI in respect of food items is intriguing and is a trend against normal price behavior and needs to be examined more carefully, as it may have some important policy ramifications,” the report quoted from an SBI research note. Why would the government do this? Because of the RBI. The central bank has many a time indicated that it is now more relying on CPI-based inflation than WPI. So, the government, desperate for a rate cut, may be hoping that a softer CPI food price will prompt the RBI to take a favourable decision sooner..............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
No comments:
Post a Comment