Everybody worries about the cost of living. The fear of inflation could be the reason why household inflation expectations are often higher than warranted by data. The differential is now startling. Consumer Price Index-based inflation dipped to a historic low of 2.18 per cent year-on-year in May 2017.
Inflation could stay at current levels or slide further. Food prices have fallen and might fall further, if the monsoon is good. Fuel prices are low and likely to stay low. Metals and commodity prices could stabilise at current levels, or head lower.
Compare that prognosis to perception. The quarterly Reserve
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