Yes, you are correct. What I had in mind was the proclamation of by the government and the section of the media that inflation is going to come down. This can happen if wages does not rise in tandem with prices. I agree that this should have been mentioned explicitly. Moreover, such steady rate of inflation presumes existent of a strong and powerful trade union which is not the case in India. Therefore, the more likely scenario is one where wages are depressed to bring down inflation.
you are correct. the data quoted was from my thesis, which had the relevant data only till 2004-05. in a hurry I could not locate the latest data. thanks for the information.
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