{"id":60474,"date":"2020-12-27T18:17:19","date_gmt":"2020-12-27T12:47:19","guid":{"rendered":"https:\/\/www.legalindia.com\/news\/?p=60474"},"modified":"2020-12-27T18:17:19","modified_gmt":"2020-12-27T12:47:19","slug":"divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper","title":{"rendered":"Divergences in rural and urban inflation do not persist for long: RBI paper"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"49363\" data-permalink=\"https:\/\/www.legalindia.com\/news\/rbi-cuts-key-rate-0-25-lower-home-auto-emis\/rbi-2\" data-orig-file=\"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?fit=281%2C179&amp;ssl=1\" data-orig-size=\"281,179\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"rbi\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?fit=281%2C179&amp;ssl=1\" class=\"alignleft size-full wp-image-49363\" src=\"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?resize=281%2C179&#038;ssl=1\" alt=\"\" width=\"281\" height=\"179\" srcset=\"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?w=281&amp;ssl=1 281w, https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?resize=150%2C96&amp;ssl=1 150w\" sizes=\"auto, (max-width: 281px) 100vw, 281px\" \/><\/a>Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an RBI article.<\/p>\n<p>This convergence of rural-urban inflation supports the relevance of one inflation target as nominal anchor at the national level, said the article prepared by Binod B. Bhoi, Himani Shekhar and Ipsita Padhi, Department of Economic and Policy Research, RBI.<\/p>\n<p>&#8220;Rural urban inflation dynamics in India reveals close co-movement, with episodic divergences driven by different components food, fuel or ex-food and fuel which do not persist long,&#8221; it said.<\/p>\n<p>Empirical estimates, it said, revealed that the differentials between rural and urban inflation are transient and both exhibit a long-run equilibrium relationship, with a significant error correction in the short-run.<\/p>\n<p>At the state level, urban and rural inflation rates converge over time, the article said, adding, &#8220;these findings support the relevance of one inflation target as the nominal anchor at the national level for both rural and urban areas as well as all states&#8221;.<\/p>\n<p>The RBI said the views expressed in the article are those of the authors and do not represent the views of the central bank.<\/p>\n<p>The article noted that headline Consumer Price Index (CPI) inflation witnessed significant and sustained moderation during 2012-13 to 2018-19, before rising thereafter. Both rural and urban inflation exhibited a similar trend with the only difference that urban inflation started rising from 2018-19.<\/p>\n<p>Moreover, annual average urban inflation which was ruling below rural inflation till 2017-18, moved above it during 2018-19 and 2019-20. Both food and non-food inflation contributed to the divergence between urban and rural inflation.<\/p>\n<p>The authors said contributions of major groups to annual inflation, however, mask intra-year movements in inflation in the rural and urban areas, given significant differences in the composition of the CPI baskets.<\/p>\n<p>&#8220;It can be observed from monthly data that rural and urban all groups inflation have often diverged during 2012-2020, but the divergence has not persisted long, suggesting the existence of a long-run relationship between them,&#8221; the article said.<\/p>\n<p>This is further corroborated by the fact that the divergence has been driven not by any single component over time but by different components of CPI food, fuel and excluding food and fuel items during different periods, it added.<\/p>\n<p>It further said that in 2020-21 so far, headline inflation has firmed up further reflecting the impact of COVID-19 induced lockdown measures and associated supply chain disruptions. Rural and urban inflation, however, have displayed significant convergence, broadly mirroring the trends in food price inflation after April-May 2020.<\/p>\n<p>This could be attributed to the nature of the spread of COVID-19 and imposition of various lockdown measures to contain the spread, which was initially confined to urban areas before eventually spreading to rural areas, it said.<\/p>\n<p>The RBI has been tasked by the government to keep the retail inflation at 4 per cent (+,- 2 per cent).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an RBI article. This convergence of rural-urban inflation supports the relevance of one inflation target as nominal anchor at the national level, said the article prepared by Binod B. Bhoi, Himani Shekhar and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":45196,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[47452,47453],"class_list":["post-60474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-law-news","tag-divergences-in-rural-and-urban-inflation","tag-rural-and-urban-inflation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Divergences in rural and urban inflation do not persist for long: RBI paper - Legal News India - Supreme Court &amp; High Court Updates<\/title>\n<meta name=\"description\" content=\"Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an - Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Divergences in rural and urban inflation do not persist for long: RBI paper - Legal News India - Supreme Court &amp; High Court Updates\" \/>\n<meta property=\"og:description\" content=\"Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an - Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\" \/>\n<meta property=\"og:site_name\" content=\"Legal News India - Supreme Court &amp; High Court Updates\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalindiaCom\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-27T12:47:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"226\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Legal India Admin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Legal India Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\"},\"author\":{\"name\":\"Legal India Admin\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\"},\"headline\":\"Divergences in rural and urban inflation do not persist for long: RBI paper\",\"datePublished\":\"2020-12-27T12:47:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\"},\"wordCount\":491,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.legalindia.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2016\\\/10\\\/RBI-Logo.jpeg?fit=300%2C226&ssl=1\",\"keywords\":[\"Divergences in rural and urban inflation\",\"Rural and urban inflation\"],\"articleSection\":[\"Top Law News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\",\"name\":\"Divergences in rural and urban inflation do not persist for long: RBI paper - Legal News India - Supreme Court &amp; High Court Updates\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.legalindia.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2016\\\/10\\\/RBI-Logo.jpeg?fit=300%2C226&ssl=1\",\"datePublished\":\"2020-12-27T12:47:19+00:00\",\"description\":\"Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an - Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/www.legalindia.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2016\\\/10\\\/RBI-Logo.jpeg?fit=300%2C226&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.legalindia.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2016\\\/10\\\/RBI-Logo.jpeg?fit=300%2C226&ssl=1\",\"width\":300,\"height\":226},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Top Law News\",\"item\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/category\\\/top-law-news\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Divergences in rural and urban inflation do not persist for long: RBI paper\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/\",\"name\":\"Legal News India - Supreme Court & High Court Updates\",\"description\":\"Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#organization\"},\"alternateName\":\"Legal News India for Advocates, Lawyers & Law Students\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#organization\",\"name\":\"Legal News India: Supreme Court, High Courts & Govt Updates\",\"alternateName\":\"Legal News India for Advocates, Lawyers & Law Students\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/www.legalindia.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2018\\\/05\\\/538552_367793346590451_81997783_n.jpg?fit=250%2C250&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/www.legalindia.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2018\\\/05\\\/538552_367793346590451_81997783_n.jpg?fit=250%2C250&ssl=1\",\"width\":250,\"height\":250,\"caption\":\"Legal News India: Supreme Court, High Courts & Govt Updates\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/LegalindiaCom\\\/\",\"https:\\\/\\\/x.com\\\/Legal_india\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\",\"name\":\"Legal India Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"caption\":\"Legal India Admin\"},\"sameAs\":[\"https:\\\/\\\/www.legalindia.com\",\"https:\\\/\\\/x.com\\\/legaliadmin\"],\"url\":\"https:\\\/\\\/www.legalindia.com\\\/news\\\/author\\\/legal-india-admin\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Divergences in rural and urban inflation do not persist for long: RBI paper - Legal News India - Supreme Court &amp; High Court Updates","description":"Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an - Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper","og_locale":"en_US","og_type":"article","og_title":"Divergences in rural and urban inflation do not persist for long: RBI paper - Legal News India - Supreme Court &amp; High Court Updates","og_description":"Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an - Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.","og_url":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper","og_site_name":"Legal News India - Supreme Court &amp; High Court Updates","article_publisher":"https:\/\/www.facebook.com\/LegalindiaCom\/","article_published_time":"2020-12-27T12:47:19+00:00","og_image":[{"width":300,"height":226,"url":"https:\/\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg","type":"image\/jpeg"}],"author":"Legal India Admin","twitter_misc":{"Written by":"Legal India Admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#article","isPartOf":{"@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper"},"author":{"name":"Legal India Admin","@id":"https:\/\/www.legalindia.com\/news\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea"},"headline":"Divergences in rural and urban inflation do not persist for long: RBI paper","datePublished":"2020-12-27T12:47:19+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper"},"wordCount":491,"commentCount":0,"publisher":{"@id":"https:\/\/www.legalindia.com\/news\/#organization"},"image":{"@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg?fit=300%2C226&ssl=1","keywords":["Divergences in rural and urban inflation","Rural and urban inflation"],"articleSection":["Top Law News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper","url":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper","name":"Divergences in rural and urban inflation do not persist for long: RBI paper - Legal News India - Supreme Court &amp; High Court Updates","isPartOf":{"@id":"https:\/\/www.legalindia.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage"},"image":{"@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg?fit=300%2C226&ssl=1","datePublished":"2020-12-27T12:47:19+00:00","description":"Rural-urban inflation divergence does not persist in the long run and converges over time, and both exhibit a long-term equilibrium relationship, said an - Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.","breadcrumb":{"@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#primaryimage","url":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg?fit=300%2C226&ssl=1","contentUrl":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg?fit=300%2C226&ssl=1","width":300,"height":226},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalindia.com\/news\/divergences-in-rural-and-urban-inflation-do-not-persist-for-long-rbi-paper#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalindia.com\/news\/"},{"@type":"ListItem","position":2,"name":"Top Law News","item":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},{"@type":"ListItem","position":3,"name":"Divergences in rural and urban inflation do not persist for long: RBI paper"}]},{"@type":"WebSite","@id":"https:\/\/www.legalindia.com\/news\/#website","url":"https:\/\/www.legalindia.com\/news\/","name":"Legal News India - Supreme Court & High Court Updates","description":"Get the latest legal news from the Supreme Court, High Courts, and government. Essential updates on judgements, acts, and in-depth analysis for lawyers, advocates, and law students in India.","publisher":{"@id":"https:\/\/www.legalindia.com\/news\/#organization"},"alternateName":"Legal News India for Advocates, Lawyers & Law Students","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalindia.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.legalindia.com\/news\/#organization","name":"Legal News India: Supreme Court, High Courts & Govt Updates","alternateName":"Legal News India for Advocates, Lawyers & Law Students","url":"https:\/\/www.legalindia.com\/news\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalindia.com\/news\/#\/schema\/logo\/image\/","url":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2018\/05\/538552_367793346590451_81997783_n.jpg?fit=250%2C250&ssl=1","contentUrl":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2018\/05\/538552_367793346590451_81997783_n.jpg?fit=250%2C250&ssl=1","width":250,"height":250,"caption":"Legal News India: Supreme Court, High Courts & Govt Updates"},"image":{"@id":"https:\/\/www.legalindia.com\/news\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalindiaCom\/","https:\/\/x.com\/Legal_india"]},{"@type":"Person","@id":"https:\/\/www.legalindia.com\/news\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea","name":"Legal India Admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","caption":"Legal India Admin"},"sameAs":["https:\/\/www.legalindia.com","https:\/\/x.com\/legaliadmin"],"url":"https:\/\/www.legalindia.com\/news\/author\/legal-india-admin"}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/10\/RBI-Logo.jpeg?fit=300%2C226&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":60680,"url":"https:\/\/www.legalindia.com\/news\/rbi-projects-retail-inflation-at-5-1-pc-in-fy22-on-supply-side-measures","url_meta":{"origin":60474,"position":0},"title":"RBI projects retail inflation at 5.1 pc in FY22 on supply-side measures","author":"Legal India Admin","date":"June 4, 2021","format":false,"excerpt":"The Reserve Bank of India on Friday said it expects retail inflation to be at 5.1 per cent in the current financial year supported by the progress of monsoon and effective supply-side interventions by the government. The projection is well within the Monetary Policy Committee's target to keep the rate\u2026","rel":"","context":"In &quot;Corporate Law News&quot;","block_context":{"text":"Corporate Law News","link":"https:\/\/www.legalindia.com\/news\/category\/corporate-law-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2019\/01\/RBI-governor.jpg?fit=302%2C201&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4932,"url":"https:\/\/www.legalindia.com\/news\/rbi-may-lift-crr-rates-bankers","url_meta":{"origin":60474,"position":1},"title":"RBI may lift CRR, rates: Bankers","author":"Legal India Admin","date":"April 11, 2010","format":false,"excerpt":"Growing concerns about runaway inflation and signs of stable economic recovery may prompt the Reserve Bank to hike its key short-term rates and cash reserve ratio by 0.25-0.5% at its annual monetary policy on April 20, top bankers today said. The apex bank, which began unwinding its monetary stimulus by\u2026","rel":"","context":"In &quot;Top Law News&quot;","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19551,"url":"https:\/\/www.legalindia.com\/news\/rbi-cuts-key-rates-by-50-basis-points","url_meta":{"origin":60474,"position":2},"title":"RBI cuts key rates by 50 basis points","author":"Legal India Admin","date":"April 17, 2012","format":false,"excerpt":"The Reserve Bank of India (RBI) today cut key rates by 50 basis points but left the Cash Reserve Ratio untouched at 4.75 per cent in its Mid Quarter Review of Monetary Policy 2012-13. Announcing the Monetary Policy, RBI Governor D Subbarao said the Repo rate was being cut by\u2026","rel":"","context":"In &quot;Top Law News&quot;","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":49362,"url":"https:\/\/www.legalindia.com\/news\/rbi-cuts-key-rate-0-25-lower-home-auto-emis","url_meta":{"origin":60474,"position":3},"title":"RBI cuts key rate by 0.25%; to lower home and auto EMIs","author":"Legal India Admin","date":"August 6, 2017","format":false,"excerpt":"The Reserve Bank today slashed benchmark lending rate by 0.25 per cent to 6 per cent citing reduction in upside risk to inflation, a move that will lower EMIs for home, auto and personal loans. This is the first rate cut since October 2016 and the interest rate is now\u2026","rel":"","context":"In &quot;High Profile Cases&quot;","block_context":{"text":"High Profile Cases","link":"https:\/\/www.legalindia.com\/news\/category\/high-profile-cases"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":59681,"url":"https:\/\/www.legalindia.com\/news\/rbi-cuts-interest-rates-and-extends-loan-moratorium-to-ramps-up-economic-support","url_meta":{"origin":60474,"position":4},"title":"RBI cuts interest rates and extends loan moratorium to ramps up economic support.","author":"Legal India Admin","date":"May 22, 2020","format":false,"excerpt":"The Reserve Bank of India (RBI) on Friday slashed interest rates, extended moratorium on loan repayments and allowed banks to lend more to corporates in an effort to support the economy which is likely to contract for the first time in over four decades. The benchmark repurchase (repo) rate was\u2026","rel":"","context":"In &quot;Top Law News&quot;","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2017\/08\/rbi.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":13541,"url":"https:\/\/www.legalindia.com\/news\/kashmir-villager-sends-rs-26-to-manmohan-montek","url_meta":{"origin":60474,"position":5},"title":"Kashmir villager sends Rs.26 to Manmohan, Montek","author":"Legal India Admin","date":"October 2, 2011","format":false,"excerpt":"\u00a0 A villager from Ramban district of Jammu and Kashmir Saturday said he has sent demand drafts of Rs.26 -- the Planning Commission's poverty line cut-off for rural areas -- to Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and the commission's Deputy Chairman Montek Singh Ahulwalia and asked them\u2026","rel":"","context":"In &quot;Media &amp; Entertainment News&quot;","block_context":{"text":"Media &amp; Entertainment News","link":"https:\/\/www.legalindia.com\/news\/category\/media-entertainment-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2011\/10\/manmohan-singh.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/p6H5Bf-fJo","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/60474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/comments?post=60474"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/60474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media\/45196"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media?parent=60474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/categories?post=60474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/tags?post=60474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}