....RBI is grappling with two issues here. The first being statistical reliability of the new CPI. The second issue is its divergence from WPI. An early adoption raises the probability of policy errors from erratic data points in a short time-series. The latter could potentially shift the yield curve upwards, to the detriment of growth. RBI’s official position on the former is to wait for statistical robustness checks before formal adoption. Its response to the more crucial second issue of WPI-CPI divergence has not been publicly articulated.........
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