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Flexible Inflation Targeting Framework 2026–2031
March 28 , 2026
13 hrs 0 min
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- The government has notified the inflation target for 2026–2031 under the Flexible Inflation Targeting (FIT) framework.
- The FIT framework was given legal status through an amendment to the Reserve Bank of India Act, 1934, in 2016.
- Inflation target remains 4% (Consumer Price Index - CPI) with a tolerance band of 2%–6% for 2026–2031.
- Reserve Bank of India manages inflation through the Monetary Policy Committee (MPC), a 6-member body.
- Inflation outside the 2%–6% band for 3 consecutive quarters is considered a policy failure.
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