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The impact of food inflation shock on core inflation was the maximum during the late 1990s, which has declined over time, the paper finds. The response of core inflation to a one per cent rise in food inflation has declined from 0.37 percentage points in the second quarter of 1998-99 to 0.14 percentage points in the third quarter of 2023-24. The responsiveness of core inflation to food shock has declined substantially in the post de jure flexible inflation targeting regime in India.

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India ,Harendra Kumar Behera ,Abhishek Ranjan ,Bank Department ,Reserve Bank ,Inflation ,Fuel Inflation ,Indian Economy ,Economy ,Monetary Policy ,Core Inflation ,Global Uncertainties ,Flexible Inflation Targeting ,Economic Research ,

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