India Rate Setter Joins Clamor for Updating Inflation Basket

A dovish India rate setter said the distribution of weights in the inflation basket needs to be revised, joining others seeking urgent changes to the way the nation collects and uses its data.

“These weights are based in 2012, and a lot of change has happened since then,” Ashima Goyal, an external member in Reserve Bank of India’s monetary policy committee said at an event Wednesday. The government should revise the weights and there are “various discussions going on with them,” she said.