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Friday, August 1, 2025
TopicInflation targeting

Topic: inflation targeting

Food inflation getting more persistent & widespread and, unfortunately, showing no signs of easing

RBI has retained its inflation projection at 5.4% for the current year. Uncertainties in food prices and volatility in global crude oil prices continue to keep 4% target out of reach.

RBI’s inflation conundrum in a rocky world — how relevant is 4% target if it hasn’t been met in 4 yrs

Geopolitical conflicts & new cold war have upended oil, various food and commodity markets. Climate-change issues will impose other costs. So, prices will rise even if demand is weak.

Does inflation targeting work? IMF paper casts doubt on policy of RBI, many other central banks

Findings are of relevance for RBI, which has followed inflation targeting policies since 2016 but had to write to govt in December 2022 explaining why inflation had overshot target.

India’s WPI inflation surges to 11.39% in August due to costlier manufactured goods

According to data released Monday, retail inflation softened to a four-month low of 5.3% in August, from 5.59% in the previous month, led by subdued prices of food articles.

Why Modi govt has done well to maintain continuity in inflation targeting framework

Many experts argued against retaining 4% plus-minus 2% target, while some wanted to scrap the framework altogether. But it provides stability, can help growth.

War in Karnataka BJP has affected governance. High command’s silence a message for Yediyurappa

ThePrint view on the most important issues, instantly.

Inflation is set to ease further, but it’s also time India analysed price data better

Year-on-year method misses trends in prices, so month-to-month seasonal adjustment should be used. According to this, May-December avg inflation was 4.05%.

Relaxing inflation target for growth isn’t necessarily good, Modi govt must assess idea well

The inflation target band is currently 4% plus-minus 2%, but a review is coming up in March 2021. Relaxing it for 5 years may not be a good idea.

RBI’s new MPC should focus on transmission. Without that, more rate cuts can be pointless

RBI must work towards better transmission mechanism, for which India needs deep & liquid bond market, competitive banking sector & regulatory framework.

Inflation targeting has worked for India, it is one of Modi govt’s defining achievements

Under 2016 RBI Act, govt needs to review the inflation target next year but not its framework. Yet, there’s a growing clamour to scrap the system.

On Camera

Big win for Delhi factories as MCD scraps an extra layer of red tape for ease of doing business

Until now, units operating even in recognised industrial areas needed a separate factory licence. The move is expected to especially give a boost to small and medium enterprises.

India to get last of Spain-built C-295 next month, focus now on 1st India-made aircraft

New Delhi: The last of the C-295 transport aircraft that is replacing the ageing Avro fleet of the Indian Air Force (IAF) will be...

Modi’s Bharat vs Indira’s India: 11-yr report card of politics, diplomacy, economy, nationalism

As Narendra Modi becomes India’s second-longest consecutively serving Prime Minister, we look at how he compares with Indira Gandhi across four key dimensions.