RBI and the fight against inflation

.....One criticism of RBI’s monetary stance is that it can only control core inflation (as measured by WPI). That has remained below 3% for a while now and, hence; there is a case to loosen interest rates. Once again, this way of looking at inflation is illusory. Take a look at core inflation, but as measured by CPI, and you see a different picture: for the last four months, from June onwards, core CPI has been consistently above 8% and was the highest at 8.39% in September. One can quibble about what index RBI should track, WPI or CPI. But the fact remains that..........

Read - Mint