RBI Easing Will Be Delayed Further, Says Continuum Economics’s Chanana

The video discusses the challenges faced by the Reserve Bank of India (RBI) in managing monetary policy amidst external factors and inflation. It highlights the impact of food prices on inflation, which constitutes a significant portion of the Consumer Price Index (CPI) basket in India. The RBI's focus on price stability is emphasized, despite the need for economic stimulus. The debate between focusing on headline versus core inflation is explored, along with the RBI's cautious approach to rate cuts due to persistent inflationary pressures.

How does the RBI's focus on headline inflation versus core inflation impact its policy decisions?

What challenges does the RBI face in achieving price stability given the current inflation rate?