RBI wants your opinion on inflation targeting framework
The Reserve Bank of India (RBI) just dropped a discussion paper asking everyone—yes, the public included—for feedback on its approach to keeping inflation in check.
They're rethinking whether to focus on overall prices or just core inflation (excluding food and fuel), and if the current 4% target (plus or minus 2%) still makes sense.
If you have thoughts, you can send them in by September 18, 2025.
Why the change in approach?
RBI's inflation targeting system has been around since 2016 and aims to keep prices steady while helping the economy grow.
It's actually helped bring average inflation down from 6.8% to 4.9%.
The RBI points out that food and fuel make up a huge chunk of what we spend but don't always react much to policy changes.
Globally, other countries are tweaking their own frameworks too—so this is a chance for the public to provide input on how money matters are handled in India.