The Reserve Bank of India (RBI) governor reaffirms the 4 percent inflation target, amid four years of inflation surpassing this mark. The transition to Consumer Price Index (CPI) inflation as the central focus occurred in 2014, enhancing the monetary policy framework. Despite unforeseen challenges like the pandemic and geopolitical tensions, adherence to the 4 percent benchmark remains crucial.
Notably, monetary policy remained accommodative rather than becoming more stringent. The pandemic-induced disruptions further elevated inflation, even prior to global lockdowns. The RBI aims to restore inflation to 4 percent by late 2024, a vital step in reestablishing control over inflation.