RBI should focus on softening core inflation: MPC's Shashanka Bhide

India’s central bank must stay focused on moderating components of inflation that are not directly influenced by food or fuel, and work on dampening overall price expectations, said a rate-setter usually known for his dovish views.

“As far as monetary policy is concerned, moderation in the core inflation should be the priority,” Shashanka Bhide, an external member of the Reserve Bank of India’s monetary policy committee, said in an emailed interview Friday, referring to the gauge that strips out volatile food and energy prices. “It is important that the inflation expectations are anchored closer to the policy target.”

While the