Inflation and Price Indices — Mains Questions

Discuss the rationale behind India's shift from WPI to CPI as the headline inflation measure for monetary policy. Evaluate the effectiveness of the flexible inflation targeting framework in managing price stability in recent years.

Inflation disproportionately impacts different sections of society. Analyze the socio-economic consequences of high inflation on various income groups and suggest government measures to mitigate these impacts.

Despite the adoption of inflation targeting, India often experiences persistently higher inflation compared to developed economies. Critically examine the structural factors contributing to this phenomenon and suggest long-term policy solutions.