2-6% retail inflation band has been working well since 2016, say economists

However, some want core to be monitored as well, MPC should be given leeway to choose target

While economists believe that the current framework of retail price inflation at four per cent with plus and minus two per cent as tolerance limit has worked well, they say core inflation should also be monitored, with the government and the Reserve Bank of India set to review the target this month. 

However, some economists, such as Madan Sabnavis of CARE Ratings, are of the view that the target be changed to five per cent, plus or minus two per cent and it was clearly mentioned in the law that economic growth should also be a part of the target.