Inflation forecast

A substantial increase in MSPs could push inflation and affect inflationary expectations, forcing RBI to raise repo rate. Illustration: Jayachandran/Mint
There’s no doubt RBI needs to sharpen its inflation forecasting model. But the argument that it should change policy direction based on the latest announced inflation number is based on a misunderstanding of the inflation-targeting concept. Photo: Bloomberg (Bloomberg)

Inflation concerns

1 min read . 19 Nov 2017