Sunday, November 20, 2011

Montek Admits Plan Panel Went Wrong On Inflation Projection

PTI | Nov 20, 2011, 11.01AM IST

NEW DELHI: Planning Commission deputy chairman Montek Singh Ahluwalia on Sunday conceded that he went wrong while projecting moderation in inflation which remains near the double-digit mark.

"It is true that we were hoping that this (moderation in inflation) will happen earlier, to that extent our credibility becomes a question," he told in a interview for CNN-IBN's TV programme 'Devil's Advocate' when asked why government's repeated projections on inflation proved false.

"You should recognise that short-term forecast is subject to error," he said. He, however, asserted inflation would moderate to 7-7.5 per cent by March, 2012.

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So why bother making a forecast in the first place (given that you know it is subject to error)??

Asserted inflation would moderate to 7-7.5 % by March 2012 - ahem... I have a question - isn't this (too) a short-term forecast?

Lagta hai Sardaar ji ke permanently baarah baj gaye hain.

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