Given the economic slump, it should review whether its neutral real interest rate and inflation target need to be recalibrated
The puzzling price trends in China should resonate with the six members of the Indian monetary policy committee (MPC) when they meet in early December to decide their next move. Chinese producer prices fell the most in three years in October, while consumer prices went up at the quickest rate in eight years. Core inflation was under control. The sharp increase in consumer price inflation in China is largely explained by soaring pork prices.