India has followed a consistent policy on allowing capital inflows in general and on capital account management  5  Ostry, Jonathan D. and Others (2010), “Capital Inflows: The Role of Controls”, IMF Staff Position Note, SPN/10/04, February 19, 2010. BIS central bankers’ speeches  3  in particular.
As for the outlook, the year-on-year rate of increase in the CPI (all items less fresh food), excluding the direct effects of the consumption tax hike, is likely to be around 1–1/4 percent for some time as the effects of the upward pressure from prices of petroleum products subside.