Patel could be missing a window to lower borrowing costs to spur investment proposals that are near a decade low. Such concerns revolve around three question marks over price data.The RBI’s measure of core CPI shows stickiness around 4.8 percent year-on-year since September. Bloomberg Intelligence’s economist Abhishek Gupta says that’s because the RBI hasn’t fully stripped out fuel costs from its transport basket; once done, core CPI is at 4.2 percent. "A falling core-CPI inflation suggests that the pricing power at the retail level is sliding due to inadequate demand," Gupta said. "Another argument pertains to the weights the RBI assigns various consumption patterns in its CPI basket.

Source: Economic Times April 05, 2017 02:48 UTC