Explaining the Food Inflation Debate

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Is food inflation truly skewing the effectiveness of monetary policy? The government certainly seems to think so. A combination of volatile food prices, supply side inflation surge, and tame core inflation has led the government to think food inflation had best be excluded from the headline numbers. Now this can be massively consequential as its weightage in the consumer price index is 46%!. So does the change in framework make any sense? Host Anirban Chowdhury talks to Gaura Sengupta () , Chief Economist at IDFC FIRST Bank about the Debate Over India’s Monetary Policy Framework.



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