Opinion | Tackling India’s inflation and policy puzzles
While lower food prices are good news for consumers, they will not help address the distress in the rural economy
Inflation based on consumer price index (CPI) has surprised analysts on the downside. Data released last week showed that inflation for the month of October was at 3.31%. Analysts expect headline inflation to remain low in the coming months as well, partly because of lower food prices. Global crude prices have also come down recently and should help keep inflation in check. The headline inflation number should please both the government and the Reserve Bank of India (RBI).