Measuring inflation in India

Ajay Shah says that the repo rate is below the WPI inflation rate, so monetary policy is too loose.

Surjit Bhalla says that the repo rate is above the CPI inflation rate by a couple of percentage points, so monetary policy is too tight. There are, of course, many other facets to their arguments and differing conclusions, but apropos this issue of measuring inflation in India, I think this article by Ila Patnaik is very useful:

http://openlib.org/home/ila/MEDIA/2007/cpiwpi.html