Why RBI’s inflation forecasting model needs to be bolstered for economic recovery

William M Martin, former US Federal Reserve chairman, had observed, 'Inflation is a thief in the night and if we don't act promptly and decisively, we will always be behind.' There are two parts to this observation. One, that inflation reduces well-being by reducing purchasing power amounting to 'theft'. Two, that timely and strong action needs to be taken to deal with inflation.