Section

Should India review its inflation targeting framework or not?

By Economic Times - 3 months ago
India has observed 8 years of inflation targeting (IT) since its implementation in September, yielding positive outcomes like stable headline inflation and enhanced monetary policy transmission. Despite these successes, there have been calls to modify the IT framework, particularly by targeting core inflation instead of the CPI headline, which includes volatile food prices. Proponents argue that monetary policy struggles to control supply-driven food inflation and that core inflation is a more stable target.

Disclaimer : Mymoneytimes implements extreme caution and care in collecting data before publication. Mymoneytimes does not liable for the adequacy, accuracy or completeness of any given information. Hence we are not liable for any kind of direct or indirect loss caused by the use of such information.