Central banks typically tend to articulate the price stability objective in terms of a consumer price index (CPI) as CPI is considered to be a better indicator of the cost of living and hence is seen to be better reflecting the welfare objective of monetary policy. 5. As far as inflation measures go, the problem in India is not of deficit, but of excess.
Sources: ABS; RBA One’s assessment of prospects for consumption will be driven mainly by one’s assessment of the outlook for income, but will also be affected by expectations about asset values and in particular one’s view on whether housing prices are overvalued.