RBI's rate decision influenced more by core rather than headline inflation

India's annual headline inflation slowed for a third straight month in March to 4.28 per cent from 4.44 per cent in February

Investors wrong-footed by the hawkish Indian central bank minutes might rather want to train their sights on underlying trends in inflation than the volatile headline number, analysts say.

The Reserve Bank of India, which Bloomberg economists Tom Orlik and Justin Jimenez rate among the top 3 central banks that surprise the most, has a mandate to keep headline inflation around 4 per cent in the medium term. But commentary from members of RBI’s rate-setting panel show they are more focused on core inflation -- the gauge that strips out volatile food and fuel components.

Globally, focus on core inflation is par for