Modi Aide Questions Rajan’s Focus on CPI to Set India Rates
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The Indian government’s top economic adviser took a swipe at central bank Governor Raghuram Rajan’s monetary policy, questioning whether his focus on consumer prices is appropriate in the current economic situation.
Prime Minister Narendra Modi’s administration agreed with the central bank earlier this year to bring down consumer-price inflation to 4 percent in a few years. Consumer prices rose 4.87 percent in April, compared with a fall of 2.65 percent in wholesale prices, the key inflation gauge used before Rajan took over.