Government The Reserve Bank of India (RBI) on Wednesday maintained its retail inflation target at 4.00 percent. Under this, the Reserve Bank has again been given the responsibility to maintain retail inflation at 4 percent with a variation of 2 percent for the next 5 years i.e. till March 2031. To control price rise, the government had given the responsibility to RBI in 2016 to maintain retail inflation at 4 percent with a margin of 2 percent for the five years ending March 31, 2021. Subsequently, in March 2021, the government maintained the same target.
India had handed over the responsibility of controlling inflation to RBI in the year 2016.
This is the second time that the government has maintained the inflation target. The notification published in the Gazette on March 25 by the Department of Economic Affairs said that the Central Government, in consultation with the Reserve Bank, notifies the inflation target for the period April 1, 2026 to March 31, 2031. According to the notification, the inflation target is 4 percent. Its upper limit is 6 percent and lower limit is 2 percent. India adopted the inflation targeting framework and formally transferred responsibility for it to the central bank in 2016.
Even in the year 2016, RBI was given a target of 4 percent
The 6-member Monetary Policy Committee (MPC) in its first meeting in October, 2016 was given the responsibility of maintaining the annual inflation at 4 percent with a margin of 2 percent till March 31, 2021. Over the past decade, inflation has remained within prescribed limits for almost three-quarters of the time. However, there was instability during the pandemic years. According to the latest data, retail inflation increased to 3.21 percent in February, which was 2.74 percent in the previous month. Let us tell you that RBI has released the details of the first Monetary Policy Committee (MPC) meeting for the financial year 2026-27. The first meeting of the new financial year starting from April 1 will begin on April 6 and decisions will be announced on April 8.