10 Another reason to keep watch over the broader inflation picture is that, if the rate of change in the price of an excluded item receives a permanent shock, then the headline inflation rate can deviate from the core measure for an extended period of time.
The domestic economic outlook is also bright with the real GDP growth rate surpassing 8% last year and estimated to be around 7% in the current year. Industrial performance also improved considerably with a strong manufacturing growth for the second consecutive year. Inflation rate has been under control, barring some hiccup for a short period.