With the growing expectations that wages will be raised continuously amid continued improvement in the employment situation, the underlying rate of increase in the CPI will likely accelerate gradually with such interactive effects between rises in wages and prices. In this sense, I am paying particularly close attention to the labor-management wage negotiations in spring 2017 in forecasting future price developments. II.
While we honour the sterling contribution of Prof. Mahalnobis, this event has turned out to be an important occasion for focusing on further development of statistics in the Reserve Bank. Prof. Mahalanobis was the founder director of the Indian Statistical Institute (ISI).