Economists see merit in keeping inflation-targeting framework unchanged

by Nidhi Bhati

Most economists opine that the inflation target band of two to six per cent should be retained and should not be tailored to suit temporary disruptions, as per a report in Financial Express. The Monetary Policy Committee’s (MPC’s) inflation-targeting framework is up for review next month as the five-year term for the framework is about to get over. Economists have also pitched for reviewing core inflation reasoning that it is a more stable gauge of price pressure, given that the overall consumer price index is loaded with food products. However, there has to be a standardised method of calculating core inflation, they added.

References
1. https://www.financialexpress.com/economy/medium-term-inflation-targeting-framework-review-dont-dilute-inflation-target-say-economists/2199115/