<h1>RBI Study: Corporate Pricing Power Boosts Manufacturing Output; Impact on Inflation Less Pronounced, Immediate Effect on Output Growth.</h1> The Reserve Bank of India released a working paper examining the relationship between corporate pricing power, inflation, and manufacturing output using a structural vector auto regression framework. The study, analyzing data from 2000 to 2012, found that pricing power has a significant positive and lagged impact on output growth for non-food manufacturing products. However, declining pricing power's effect on inflation is positive but less pronounced. The impact is more immediate on output growth than on inflation. Among use-based categories, only intermediate goods show a significant positive relationship between pricing power, inflation, and output growth.