Rebasing CPI necessary for better inflation targeting: RBI paper

The government needs to expedite its work on the revised consumer price index (CPI) which may help the central bank manage inflation expectations better as the published indices are divergent from market prices due to the 2012 base in the current series. The current index is derived from the consumption expenditure survey (CES) conducted during 2011-2012, long before inflation targeting was adopted as a formal monetary policy objective.

Rebasing CPI necessary for better inflation targeting: RBI paper
The government needs to expedite its work on the revised consumer price index (CPI) which may help the central bank manage inflation expectations better as the published indices are divergent from market prices due to the 2012 base in the current series. The current index is derived from the consumption expenditure survey (CES) conducted during 2011-2012, long before inflation targeting was adopted as a formal monetary policy objective.