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COMMENTARY

India should rethink basis of inflation target

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Food and food products make up nearly half of consumer price index in India. By way of comparison, the CPI for urban consumers in the US gives food prices a weighting of 14 per cent.

New Delhi

ANY day now, India's government is set to announce an official inflation target for the first time - a major step in the modernisation of its economic institutions, particularly the central bank. The idea has been proposed and debated for years, including in a much-discussed