Government tells RBI to keep inflation target at 4%
Business
The Indian government has told the Reserve Bank of India to keep aiming for a 4% inflation rate (with some wiggle room between 2% and 6%) all the way through March 2031.
This move keeps things steady for prices and follows the same system set up back in 2016.
Retail inflation was at 3.21% in February
The Reserve Bank of India's Monetary Policy Committee is in charge of adjusting rates to hit this target, and they have mostly managed it, even during tough times like the pandemic.
Retail inflation was 3.21% in February 2026.
Looking ahead, the Reserve Bank of India will review how it handles inflation by April 2026, using feedback from a discussion paper released in August 2025 that asks if India should rethink what counts as inflation or tweak its targets for changing times.