4 min read.Updated: 05 May 2022, 10:24 PM ISTIndira Rajaraman
A parallel focus on headline and core inflation will give us a better grasp of what monetary policy can achieve in tough times
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When headline inflation by the Consumer Price Index (CPI) printed on 12 April 2022 at 6.95% year-on-year (yoy) for March, people did not need the reading to know inflation was on. Not surprisingly, an off-cycle monetary policy announcement on 4 May hiked the repo and all associated absorption and injection rates by 0.4%, along with more direct liquidity draining measures.