Inflation targeting Current Affairs, GK & News

RBI: CPI Inflation to ease from 4.8% to 4.4% in Q2

On April 9, 2020, the Reserve Bank of India projected that the consumer Price Index is to ease from 4.8% in Q1 to 4.4% in Q2 of the financial year 2020-21. Highlights The estimated easing of CPI implies that the aggregate demand will weaken further. RBI had reduced repo rate and cash reserve ratios during ..

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Retail Inflation at 5-year high of 7.35% in December, 2019

According to the data released by Ministry of Statistics and Programme Implementation on January 13, 2020, the food inflation increased to 14.12% in December 2019 as compared to 10.01% in November 2019. The CPI (consumer Price Index) rose to 7.35% as compared to 5.54% the previous month. The inflation was increase was mainly due to ..

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Challenges Before Monetary Policy Committee

The Monetary Policy Committee (MPC) is the body of the RBI headed by its Governor. The body is responsible for taking the important monetary policy decisions for determining the repo rate. The Monetary policy committee is a statutory body established under the provisions of RBI act 1934. The functions of the committee are: The main ..

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Union Government fixes an inflation target of 4 percent for five years

The Union Government has set an inflation target of four per cent for the next five years i.e. till March 31, 2021. In this regard, Union Government will soon set-up Monetary Policy Committee (MPC) to adhere to the target till March 31, 2021. Backgroud This target was fixed after the Union Government and Reserve Bank ..

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Core inflation is a better indicator of price trends: RBI

According to RBI Governor, Core inflation is a better indicator of future price trends because of its less volatility. As per him an analysis of longer series of over three years shows that core inflation has statistically significant predictive power. However he added that headline inflation will surely have a larger momentum than core inflation.

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