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Home50-Word EditRBI shouldn't be spooked by October retail inflation. It can't do anything...

RBI shouldn’t be spooked by October retail inflation. It can’t do anything about vegetable prices

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Piyush Goyal is right to nudge RBI to cut rates to fuel flagging growth. RBI’s MPC shouldn’t be spooked in December meeting by 6.2% October retail inflation. RBI can do nothing about seasonally surging vegetable prices. It can’t be linearly inflation-driven. Ducking the trickier growth-inflation binary is a sad copout.

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Putting fresh Manipur districts under AFSPA is another admission of governance failure. The issue is Modi government’s inability to separate party politics from law and order. How can Biren Singh remain CM with rising violence, ethnic warfare, and governance mostly from Delhi? The crisis is too fraught for headline management.

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1 COMMENT

  1. Whatever the components of retail inflation, the difference between core and non core, it erodes real returns for savers. A majority of FDs are held by senior citizens. Their interests are a legitimate concern for the RBI while setting rates.

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