Big inflation misses put India’s forecasts under scrutiny

Economists predicted another big miss in the current quarter after a surprisingly low inflation print in October. — Bloomberg

MUMBAI: The Reserve Bank of India’s (RBI) inflation forecasting model is coming under increasing scrutiny from economists after the central bank consistently overestimated price pressures this year, contributing to a hawkish policy approach.

The central bank’s inflation miss in the first three months of the year was 0.7 percentage points – the biggest gap in almost six years, and well above economists’ projections.