Tag
#Consumer Price Index
Daily Important
EconomyPrelims + Mains
Does Inflation Targeting Work in India? Explained
Inflation Targeting, which is a decade-old framework for India (4% CPI), is facing difficulties due to a flat Phillips curve, unanchored expectations, and supply shocks. Rate increases could negatively impact growth without reducing inflation. Future actions should include monetary policies and supply-side measures, better communication, fiscal coordination, and India-specific models.
7 Sept 2026 3 min
Daily Important
EconomyPrelims + Mains
Retail inflation hits 19-month high of 4.45% in July 2026 as food, fuel prices rise
The inflation rate in India touched a 19-month high of 4.45% in July 2026 because of the increase in food prices, particularly that of vegetables, while the core inflation rate remained steady at 3.9%. The RBI can accommodate this situation, but certain dangers need joint efforts by monetary and supply-side policies.
13 Aug 2026 3 min