Archive · 10 Aug 2026

RBI's Dovish Stance, Core Inflation Focus Puzzles Economists

RBI's Dovish Stance, Core Inflation Focus Puzzles Economists

The Reserve Bank of India is the bank that looks after money in India.

One of its jobs is to keep prices from going up too fast.

The rate at which prices rise is called inflation.

Some things, like food and fuel, change price a lot from month to month.

The RBI usually watches the overall inflation number.

This time, though, experts think the RBI is watching a smaller number that leaves out food and fuel.

That smaller number is called core inflation, and it looked calm at 2.5 percent.

The RBI also kept interest rates the same.

Now some money experts are confused about what the RBI will do next.

They wonder if the RBI might raise rates later when the two inflation measures come closer together.

Sources