Rajan is against excluding food inflation while setting benchmark interest rates

Former RBI Governor Raghuram Rajan opposes excluding food prices from headline inflation, stressing it undermines public trust. He supports targeting a consumer-based basket to better reflect inflation expectations. Rajan critiques suggestions from the Economic Survey 2023-24, highlighting the need for RBI to manage overall price levels. He also emphasizes the importance of credible regulatory responses to allegations and supports lateral entry in the bureaucracy with careful consensus.