Must read article! I am in the camp who says GDP miscalculation has played an imp part in wrong policy moves! Also imo, infl expectations of gen public is driven by fuel price and food prices so govt's random moves on excise duty and MSP hikes do raise infl expectations. https://twitter.com/pramit_b/status/1303195116845162496

As infl estimation models of RBI can't predict these govt's random hikes, govt should devise a framework for such hikes so that RBI can predict infl outcomes better and gen public can anchor expectations based on that.

PS - Infl expectations too goes into RBI's estimation models

We need to either decontrol all the price controls or devise a framework for such hikes so that everyone(RBI/public) can predict infl outcomes better.
Random import tariffs on items has also started raising public's infl expectations as per my own local public interactions. End.

I noticed one typo in my 1st tweet.Its not about raising infl expectations but both raise and lower.Message which this thread is trying to share is that randomness of govt's policy moves is what makes RBI/public predict infl outcomes difficult which shud be tackled appropriately.