Parul
The government on December 12 2022, told Parliament that the Reserve Bank of India (RBI) has submitted its report on the breach of the inflation target for three consecutive quarters but it cannot be made public as per the provisions of the RBI Act.
Union Minister of State for Finance Pankaj Chaudhary told Lok Sabha that the relevant provisions of the RBI Act do not allow the report to be made public.
An out-of-turn meeting of the Monetary Policy Committee (MPC) of the RBI was held in early November to discuss the report to be sent to the central government for having failed to maintain the inflation mandate.
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Under the flexible inflation targeting framework introduced in 2016, the RBI is deemed to have failed in managing price rises if the CPI-based inflation is outside the 2-6 per cent range for three quarters in a row.
In October, retail inflation was 6.77 per cent and is now over the 6 per cent upper band for over three consecutive quarters. India’s average retail inflation during January-March, April-June, and July-September 2022 was at 6.3 per cent, 7.3 per cent, and 7.0 per cent, respectively, data showed.
