Problem is Rahul-flation: Why RBI is failing with rate hikes

Why is inflation refusing to lie down and play dead when the Reserve Bank has trained all its guns on it? The answer, in one line, is simple. India’s inflation is driven by populist spending and wrong economic choices – both dictated by the need to create an entitlement-based economy, presumably to help elect Rahul Gandhi as the next prime minister in 2014. In short, what we are seeing now is Rahul-flation, not conventional inflation.

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