This fact puts a different face on at least part of the inflation story. Rural workers buying more is a success, even if the relevant price index is going up. Once that is recognised, different policy ideas would have come. Or may be, it is just as well this was not recognised. The government extended NREGA to 130 other districts. Had the rural workers price index data been internalised, some panicky reaction may have prevented the extension of this most commendable programme.

The government can argue that “command and control” measures have been taken by a host of economies like Mexico, Venezuela, Argentina and Malaysia on food and staples and even Dubai and Qatar on house rents. But all indicators show that these have been equally ineffective in stemming inflationary expectations.

The writer is editor, economic affairs, ‘The Financial Express’