Unchanged Target
Government retains CPI inflation target at 4% within 2-6% band till March 2031
This story was originally published at 21:34 IST on 25 March 2026
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--Govt retains RBI's CPI inflation target at 4% for FY27-FY31
--Govt retains RBI's CPI inflation tolerance band at 2-6% for FY27-FY31
NEW DELHI – The government has retained the flexible inflation target for the Reserve Bank of India at 4% within the 2-6?nd, for the five years ending March 2031. The finance ministry on Wednesday notified the inflation target for the period from Apr. 1, 2026, to Mar. 31, 2031, in the gazette.
The RBI had sought public feedback on the framework in September and forwarded it to the government, along with its own view, to take the final call. The government and the RBI review the Flexible Inflation Targeting framework every five years. The government, which had introduced the framework in 2016, had retained the targets after the first review in 2021.
The decision to retain the inflation targets under the framework was pretty much expected, as multiple top government officials, including Economic Affairs Secretary Anuradha Thakur and Chief Economic Adviser to the Government V. Anantha Nageswaran, had said that the targets in the framework had served the nation well. RBI Governor Sanjay Malhotra had also shared similar views at several public events.
The announcement of the inflation target for the next five years comes ahead of the Apr 6-8 meeting of the Monetary Policy Committee, which is widely expected to leave the repo rate unchanged at 5.25%. End
Reported by Krity Ambey
Edited by Saji George Titus
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