Has the RBI got its inflation outlook wrong?
(WorldNews Business)

Forecasting inflation and providing inflation outlook is seldom easy. For an economy like India, whose markets are increasingly integrating with the global market through the trade and investment route, it is even more harder. There are numerous global and domestic factors that weigh on markets, in general, and on prices, in particular. Some of the key drivers include economic growth, geopolitics (impact on crude oil), monetary policy, currency gyrations and of course weather. The role of investment or speculative capital in exerting an exaggerated or disproportionately larger impact on prices is also well known.Supply constraints It is for this reason that the Reserve...