The
RBI has decided to compute and
release the Real Effective Exchange Rate on the
basis of the Consumer Price Index from this financial year.
The Bank said in a
release that the step would give a higher degree of comparability to India's
international competitiveness in relation to its trading partner countries.
Since October last year, the RBI had started giving projections of inflation in
terms of the broader CPI-Combined. The RBI had so far been providing the Real
Effective Exchange Rate index using the Wholesale Price Index for India and CPI
for partner countries.
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