The Macro Faire
The first reason is that they’re volatile. The second is that they’re influenced by factors beyond what domestic policymakers can control. For instance, both food and fuel prices are governed by global demand and supply. The RBI increasing interest rates can’t bring down the price of Brent crude oil. Therefore, central banks focus more on core infl
... See moreAnkita Pathak • The Macro Faire
When the WPI is going up but the CPI is not, it means that the inflation faced by wholesalers is rising, but they’re unable to pass that inflation on to end consumers, possibly because the demand for their goods is weak.