5. 0 per cent ). with the persistence of near double - digit inflation in 2010 and 2011, the medium - and long - term inflation expectations have risen. as per the latest survey conducted in the second quarter of 2012 – 13, the 5 - year ( 10 - year ) wpi inflation expectations were higher at 6. 5 per cent ( 6. 0 per cent ). similar upward movement in inflation expectations with regard to cpi - iw was also seen. at the same time, the differential between wpi and cpi - iw has also widened underscoring the role of higher food prices in expectations formation ( table 2 ). bis central bankers ’ speeches seventh, the inflation expectations were, however, significantly less volatile than corresponding actual rates suggesting that medium - to long - term inflation expectations remained stable, notwithstanding their recent upward movement ( chart 5 ). eighth, the manufacturing companies ’ assessment of changes in selling prices for the current quarter and expectations for the ensuing quarter obtained from the industrial outlook survey are well correlated with the year - on - year changes in the price level of non - food manufactured products ( nfmp ) component of wpi. 6 thus the survey indicators provide good lead information about the movements in the manufacturing price inflation ( chart 6 ). way forward as i discussed above, the reserve bank has developed several measures of inflation expectations over the last seven years which are providing important inputs for monetary policy formulation. in order to reinforce this process, i make a few suggestions. first, the rbi ’ s inflation expectations survey of households provides a measurement of the sentiment of inflation expectations that is essentially urban. the survey can gradually be extended to semi - urban and rural areas of the country to enhance its representation. but considering the strict time schedule in which the survey needs to be conducted to feed into the quarterly monetary policy process, it may be a difficult task to have a true national representation. moreover, being too ambitious in the scope and coverage of the survey could dilute its quality. alternatively, an inflation expectations survey of the households for the rural area can be considered. the sample villages can be drawn from the sampling frame of the new consumer price index - rural. second, governments in many countries have issued inflation - indexed bonds. these bonds apart from providing the investors a hedge against inflation, give an estimate of inflation expectations. in 1997, india had introduced a variant of inflation - indexed bond where the capital was indexed to inflation. there was no subsequent issue of such bonds due to lack

. the financial stability board has been clear about the priorities over the coming year, under the headings of implementation of basel iii changes, continuing towards completion of a regime for “ too big to fail ” financial institutions, making derivatives markets safer and making sure “ shadow banking ” activities have appropriate oversight. australia, as chair of the g20 this year, welcomes this prioritisation and has indicated that it supports the fsb as it seeks to achieve concrete results by the time of the leaders ’ meeting in brisbane next november. australian regulatory authorities continue, meanwhile, carefully to implement internationally agreed reforms, with due regard to local conditions. with those remarks, chair, we are here to respond to your questions. bis central bankers ’ speeches