......Then, there is the inflation bugbear that the RBI has valiantly tried to tame through monetary policy — raising interest rates regularly. Both current RBI governor Raghuram Rajan and his predecessor D. Subbarao have used interest rate hikes to combat inflation — in the process drawing flak for dampening growth. The monetary policy has had some effect on WPI — which has come down over the past two years. Currently, the WPI is just over 5 per cent, a far cry from the 7.5 per cent-plus it was at in November 2013. But the other big inflation problem — food price inflation — has fluctuated between 11 per cent and 8 per cent over the past 18 months despite all efforts.............
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