Tuesday, 4 October, 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

Beneficiaries of the PM-GKAY PDS centre in Odisha | Representational image | ANI

Free grains, fuel tax deferred – Gujarat, HP on its mind, Modi govt puts politics over economy

RBI's rate hike also among decisions announced last week that might pay political dividends in state polls, but could come with commensurate economic costs, say economists.

Defence

The LCH is designed with stealth features such as reduced visual, aural, radar and infrared signatures | Photo: IAF

Prachand, India’s new Light Combat Helicopter, doesn’t yet have main arsenal or protection suite

IAF inducted new helicopter Monday, but it'll get anti-tank guided missile only by mid-2023, while air-to-air missiles haven't yet been ordered, it is learnt.

India’s hijab supporters will lose even if they win SC battle. Because the real war is political

In a highly polarised time, cornered minorities tend to lean back and protect the roots and fundamentals of what is so dear to them. Politically, it can often be a bad trap.
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