Reducing core inflation key to easing prices: MPC member Shashanka Bhide

Core inflation, calculated after stripping out volatile food and energy prices, has stayed above 6% for 14 months in a row, while retail inflation cooled to 5.88% in November

A decline in core inflation pressures is critical for moderating price gains and returning them to the Reserve Bank of India’s 4 per cent midpoint, said a rate-setter at India’s monetary policy panel.
 

The pass through of higher input cost pressures in overall prices may not be complete yet, said Shashanka Bhide, an external member, adding that rising demand “however modest and uneven” in the absence of productivity improvements will stoke prices. 

The comments come after policy makers have trained their eyes on elevated core inflation amid easing consumer prices. Core inflation, calculated after stripping out volatile food and energy