RBI Introduces New CPI Series and Reviews Inflation Target Framework Ahead of April Policy

Reserve Bank of India Governor Sanjay Malhotra announced a new Consumer Price Index (CPI) inflation series based on 2024 prices, expanding coverage to 358 items to better reflect Indian households' consumption patterns and reduce volatility. While the RBI has submitted recommendations on the inflation-targeting framework to the government, any revision of the 4% inflation target with a 2% tolerance band is still under examination. The RBI will incorporate these methodological changes in its April monetary policy projections. Additionally, the RBI is monitoring a ₹590 crore fraud at IDFC First Bank but does not foresee systemic risks.