Debate over inflation target misses the point

A longstanding debate in Indian policymaking circles over which measure of consumer price inflation - headline or core - the RBI should target has been reignited in recent weeks. But the more pertinent issue is the actual weighting of food in the CPI basket. A rejig that reduced the weight of volatile food prices to better match current spending patterns would help the RBI meet its 4% target for headline inflation in future.