Core inflation must ease towards 4%, says RBI MPC's Shashanka Bhide

"High core inflation also points to the cost-price nexus in the economy more sharply," Bhide said, adding that stabilizing core prices was necessary for manufacturing firms to expand their capacities

A dove-turned-hawk in India’s monetary policy committee said demand in the economy was leading to significant price gains and high interest rates are required to keep a lid over inflation, including the core measure.
 

“Core inflation is a significant component of headline inflation. Unless this is brought close to the overall target rate of 4%, it would be hard to achieve and maintain the target,” Shashanka Bhide, an external member in the Monetary Policy Committee of the Reserve Bank of India said in an interview. 

Core inflation has stayed above 6% for 16 months in a row last month, offering