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E-mail ID will not be published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

  • Those willfully defaulting on loans should be blacklisted by Sebi

    As reported by this newspaper’s Monday edition, the Securities and Exchange Board of India (Sebi) has found merit in the Reserve Bank of India’s s

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

Arun Kumar Jain

Kickstarting technological innovation

One of the key dimensions of global competitiveness is the ...

Kuruvilla Pandikattu SJ

Developing moral, spiritual capacity

Writing in The Huffington Post, Noam Chomsky, professor emeritus, MIT ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture