Saturday, 22 January, 2022
TopicInflation targeting

Topic: inflation targeting

India’s WPI inflation surges to 11.39% in August due to costlier manufactured goods

According to data released Monday, retail inflation softened to a four-month low of 5.3% in August, from 5.59% in the previous month, led by subdued prices of food articles.

Why Modi govt has done well to maintain continuity in inflation targeting framework

Many experts argued against retaining 4% plus-minus 2% target, while some wanted to scrap the framework altogether. But it provides stability, can help growth.

War in Karnataka BJP has affected governance. High command’s silence a message for Yediyurappa

ThePrint view on the most important issues, instantly.

Inflation is set to ease further, but it’s also time India analysed price data better

Year-on-year method misses trends in prices, so month-to-month seasonal adjustment should be used. According to this, May-December avg inflation was 4.05%.

Relaxing inflation target for growth isn’t necessarily good, Modi govt must assess idea well

The inflation target band is currently 4% plus-minus 2%, but a review is coming up in March 2021. Relaxing it for 5 years may not be a good idea.

RBI’s new MPC should focus on transmission. Without that, more rate cuts can be pointless

RBI must work towards better transmission mechanism, for which India needs deep & liquid bond market, competitive banking sector & regulatory framework.

Inflation targeting has worked for India, it is one of Modi govt’s defining achievements

Under 2016 RBI Act, govt needs to review the inflation target next year but not its framework. Yet, there’s a growing clamour to scrap the system.

On Camera

YourTurn

Sania Mirza does it again. Just like she did on motherhood, Pakistani spouse and court-dress

Six Grand Slams and 47 titles didn't come easy for Sania Mirza who fought fatwas, questions on her patriotism and sexism to put Indian tennis on global stage.

Mahindra expects strong recovery in auto sales as supply chain constraints ease

According to Mahindra, the auto industry is poised for a very strong rebound because it has been buffeted by a number of factors over the last 2-3 years.

Defence

The MacMahon Line, with Arunachal Pradesh marked in red | Source: US Department of Defence

Behind teen’s ‘abduction’ on LAC in Arunachal, a legacy of colonial maps, empires and wars

It's not clear which side of LAC Miram Taron was on when he was ‘kidnapped’. Different perceptions of the border in India & China and competing maps make this tricky ground.

Modi vs non-BJP CMs: When most popular isn’t all-powerful & why Centre-state ties will worsen

Modi’s inability to win many states, and the huge popularity his rivals enjoy there, is pushing Indian politics in a more robustly federal direction.
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