Economics
India's Inflation Data Questioned by Central Bank Policy Maker
- MPC member Dholakia says improper framework can be very costly
- Government has in the past criticized RBI’s inflation forecast
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India’s inflation data is once again under scrutiny after a member of the central bank’s monetary policy panel raised questions about its efficacy.
There was an urgent need to modernize the way changes to prices are being calculated by the government as well as the way inflation expectations are being surveyed by the Reserve Bank of India, Ravindra Dholakia, a dovish member of the panel, wrote recently in the Economic and Political Weekly.