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Prices and Inflation 183
picture of inflation in the country. Further, in the context of increasing retail e-commerce
transactions, it is important to include such new sources of price data for the construction
price indices.
Figure 20: Market arrivals of Onion, Tomato and Potato
Source: CMIE
Box 3: Headline inflation or core inflation as target for monetary policy
Core inflation (inflation in the price index excluding food, fuel and other volatile
components) has been viewed by many as the better measure of inflation for monetary
policy purposes. This is because food and fuel price shocks are transitory as well as
