Real world, as we know, is too complex for such binary text book prescriptions; management of food inflation has always been a complex challenge for the Reserve Bank, both by way of policy action and its communication. 4. What I propose to do in this address is to first highlight the trends in food inflation over the past 60 years.
Having thus set the context, I will turn to factors driving structural food inflation, which should give us a perspective of the underlying dynamics and the nature of the challenge. I will then move on to indicating the policy measures for addressing the challenge of food inflation on a durable basis.