A day after the finance ministry cast doubt on the Reserve Bank of India’s (RBI’s) inflation forecasts, Deputy Governor Viral Acharya on Thursday said price rise data posed a challenge and the central bank was “grappling” with it.
Acharya also said capacity utilisation in many of the sectors was very low, with a depressing impact on economic activities.
Speaking at an event organised by ICRIER here, the deputy governor said data were the challenge one was facing on important parts of inflation that were behaving other than they had historically (in times of instability). “And let me just say we are grappling with that,” he added.
As the RBI left the key interest rates unchanged citing concerns on the price situation on Wednesday, Chief Economic Advisor Arvind Subramanian had said: “Inflation forecast errors by the RBI have been large and systematically one-sided in overstating inflation.”
via RBI grappling with inflation: Acharya | Business Standard News
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