Premature to consider CPI as nominal inflation anchor: Mayaram

It is a little premature for India to consider consumer price index (CPI) inflation as the nominal anchor for monetary policy, said Economic Affairs Secretary Arvind Mayaram on Wednesday.

CPI inflation measure has a lot of imperfections and inflation targeting may be difficult in India, Mayaram told on a national television channel.

The Reserve Bank of India released a report late on Tuesday proposing inflation to be its main objective with CPI as the nominal anchor.

"We know and we have seen that food inflation cannot be curbed purely through monetary policy," Mayaram said.

"There are other structural issues that need to be addressed if we need to control food inflation. So, in my opinion I think it is a little premature to consider CPI as the anchor of our inflation target."

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Banks must learn from past mistakes to promote financial inclusion

    Prime minister Narendra Modi launched a massive financial inclusion programme yesterday titled “pradhan mantri jan dhan yojana’ (PMJDY), that will

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Could prohibition mean profiteering?

In the mid 1930s, an American journalist asked Bapu if ...

Zehra Naqvi

The five universal languages of love

Love is a universal language. Don’t we all believe that? ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture