Government Retains 4% Inflation Target for 2026-31 Period

• The Central Government has maintained the retail inflation target at four per cent for the five-year period from April 1, 2026, to March 31, 2031.
• The upper tolerance level remains at six per cent, while the lower limit is set at two per cent, as per a Ministry of Finance notification.
• This decision ensures the Reserve Bank of India's mandate for price stability remains unchanged, mirroring the 2016 inflation-targeting framework.
• The Monetary Policy Committee (MPC) will continue to calibrate interest rates to keep retail inflation anchored.
• The notification comes as retail inflation (CPI) for February 2026 stood at 3.21 per cent, with food inflation at 3.47 per cent.