India likely to retain 4% inflation target for central bank, Bloomberg News reports

India is likely to retain ‍the existing inflation target ​for its central bank with ⁠the setup viewed as effective in managing prices, Bloomberg News reported on Monday, citing finance ministry officials ‌familiar with ‌the matter.

The flexible inflation targeting in India mandates ‌a 4% headline inflation target within a tolerance band of 2% to 6%.

The RBI's target is set every five years and is ​due in March. The Ministry of ​Finance did not immediately respond to ‌a Reuters request ‍for comment. In September, Reuters reported ‍that the RBI was expected to recommend ‌retaining the existing inflation target for a third consecutive time following feedback from stakeholders who backed the framework.


India adopted the inflation-targeting framework and formally tasked the central bank with it in 2016. ‍It was last renewed in 2021.

Over the past decade, inflation has stayed ‍within the mandated ⁠band ⁠for roughly three-quarters of the time, with volatility peaking during the pandemic years. India's retail inflation rose in November from a record low in the prior month but stayed below the central bank's target range for the third consecutive month.