The overall picture of inflation performance remained almost unchanged when using the core measures, like excluding food and energy prices. Thus, there was virtually no synchronization in expectations for prolonged low interest rates on a worldwide basis. Second, the increased interconnection between financial institutions made the adjustment in the current crisis more acute and globally synchronized.
The RBI’s past efforts in streamlining of data flow, investment in technology and continuous engagement with regulated entities paid dividends. In addition to some shift in modes of survey data collection, more consistency checks were put in place and sample follow-up revisits were introduced to ensure sanctity of data.