Prior to the global crisis, the average WPI inflation over the five year period 2003–04 to 2007–08 was about 5.5 percent. Since January 2010, however, the WPI inflation has remained within a range of 8 to 11 percent in each of the 22 successive months. That is high relative to what we experienced before the crisis.
At that time, CPIX inflation - the rate we target stood at 7 per cent. (Just for your information, we define CPIX as the CPI excluding the interest cost of mortgage bonds, for the historical metropolitan and other urban areas.) The target range of 3 to 6 per cent set was an ambitious one.