Impact of food inflation on headline inflation in India


volatile, and that it feeds into the expected inflation of the households



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4 Anuradha Patnaik
volatile, and that it feeds into the expected inflation of the households,
causing the second round effects. This calls for the Reserve Bank of India
to put greater effort in anchoring inflation expectations through effective
communication and greater credibility.
JEL classification: E, E50
Keywords: core inflation, monetary policy, food inflation, second round effects, inflation expectations
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Anuradha Patnaik, PhD, Associate Professor, Mumbai School of Economics and Public Policy, University of Mumbai, India (email Dr.A.Patnaik75@gmail.com).


Asia-Pacific Sustainable Development Journal
Vol. 26, No. 1
86

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