6% inflation target revised

RBI has identified the need to bring CPI-based inflation closer to WPI-based one

The Reserve Bank of India (RBI), which had earlier set a target of six per cent Consumer Price Index-based inflation by January 2016, now aims to achieve that target by March 2015, indicating the central bank's increasing confidence on the inflation front.

RBI has identified the need to bring the CPI-based inflation closer to Wholesale Price Index (WPI)-based one. Retail inflation for October dropped to 5.52 per cent in October. The WPI-based inflation rose an annual 1.77 per cent in October, its slowest since September 2009.

Also, RBI is open to raising investment limits for Foreign Portfolio Investors (FPIs) in debt, but any hikes would depend on the market's ability to absorb those flows, RBI Governor Raghuram Rajan said.