NEW DELHI, – India’s federal government on Wednesday retained the target for retail inflation at 4%, within a comfort band of 2%-6%, according to an official notification.
India adopted the inflation targeting framework in 2016, formally tasking the RBI with keeping headline consumer price inflation within a band set by the government. The framework was last reviewed in 2021.
The Reserve Bank of India’s Monetary Policy Committee, which includes three members from the central bank and three government appointees, are tasked with meeting that target.