Delhi HC: Passing Off is a Distinct Right, Which Resides in its Own Common Law Space  ||  Delhi HC Seeks ICICI’s Response on Plea Alleging Lack of Accessibility Standards for PWDs  ||  Bombay HC: Saying ‘I Love You’ in with No Sexual Intent Isn’t Sexual Harassment  ||  Rajasthan HC: Centre & State to Issue Directions Regarding Excessive Use of Mobile Phones by Children  ||  Allahabad HC: Undressing Woman but Failing to Commit Intercourse Amounts to ‘Attempt to Rape’  ||  MP HC: Taxpayers with Appeals that are Pending are Eligible for 50% Relief under Samadhan Scheme  ||  Del. HC: Indian Citizen Apprehending Arrest for Offence Committed Abroad Can Invoke Sec. 438 of CrPC  ||  Delhi HC: Can Grant Ad-Interim Maintenance without Filing Specific Application  ||  Delhi HC: Govt. to Take Steps for Involving Mental Health Professionals in Premature Release Process  ||  Del. HC: “Goodwill” for Purposes of Passing off, is in the Name Under Which Business Is Done    

RBI Working Paper No. 05/2020: Core Inflation Measures in India - An Empirical Evaluation using CPI Data- (Reserve Bank of India) (12 May 2020)

MANU/RPRL/0075/2020

Banking

Today the Reserve Bank of India placed on its website a Working Paper titled "Core Inflation Measures in India - An Empirical Evaluation using CPI Data" under the Reserve Bank of India Working Paper Series. The paper is co-authored by Janak Raj, Sangita Misra, Asish Thomas George and Joice John.

This paper assessed eleven possible candidates for their suitability as measures of core inflation in India based on Consumer Price Index (CPI) (2012=100) for the period 2012 to 2019. These included six exclusion-based measures, viz., (i) CPI excluding food and fuel; (ii) CPI excluding food, petrol and diesel; (iii) CPI excluding food, fuel, petrol and diesel; (iv) CPI excluding food, petrol, diesel, gold and silver; (v) CPI excluding food, fuel, petrol, diesel, gold and silver; and (vi) CPI excluding food, fuel, petrol, diesel, gold, silver and housing and five statistical measures, viz., (i) median; (ii) 5 per cent trimmed mean; (iii) 10 per cent trimmed mean; (iv) 20 per cent trimmed mean; and (v) historical standard deviation. All these candidates were tested for the standard properties of core inflation, viz., ease of communication, equality of means, lower volatility, unbiasedness, revertability, co-integration and attraction conditions. Historical standard deviation-based measure satisfied all the properties of core inflation, except ease of communication - in general, use of statistical measures pose formidable challenges for monetary policy communication. All the six exclusion based measures satisfied all properties but revertability, i.e., headline inflation reverting to core inflation over the medium term. This was possibly due to a low food inflation episode from January 2017 to August 2019. Controlling for this time period, all the exclusion-based core inflation measures, other than CPI excluding food, fuel, petrol, diesel, gold, silver and housing, revert to headline inflation satisfying all the desirable properties of core inflation.

Tags : INFLATION   MEASURES   EVALUATION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved