A second key finding is that the accuracy of forecasts tends to decline somewhat as the forecasting horizon lengthens. For most countries, the accuracy of inflation forecasts is superior to that of growth forecasts at short horizons. I conjecture that this reflects the facts that inflation has a fair bit of inertia.
The depreciation of the Rupee was particularly sharp in 2012 as the Rupee averaged 53.4 per US dollar. Empirical evidence suggests that one percentage point change in the Rupee-dollar exchange rate has 10 basis points impact on inflation.