CPI a lousy measure for monetary policy-making: Pronab Sen

Pronab Sen, chairman, National Stastistical Commission and former chief statistician talks about the debate over (which is) the right inflation gauge for monetary policy formulation, the dichotomy between wholesale price index (WPI) and the new consumer price index (CPI), and the IIP data volatility in an interview with FE's Rajkumar Ray, Banikinkar Pattanayak and KG Narendranath. He also hints that since the producer's inflation expectation has sharply come down, the RBI may have a reason to start lowering policy rates.

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