Saturday, April 27, 2013

RBI should hit pause button

........What should the Reserve Bank do in the face of moderation in WPI at one end and a sticky CPI on the other? One way out could be to use GDP deflator-based inflation, which captures price pressure in the most comprehensive manner. However, the next GDP-deflator based inflation number will be available only on May 31, when CSO would be announcing the fourth quarter GDP numbers..............

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