As inflation slows, RBI resumes monetary easing, defends policy framework

The price moderation couldn't come at a better time for central bank Governor Shaktikanta Das, with the inflation targeting mechanism that's been in place since 2016 coming up for review this year

Inflation in India may finally be slowing, opening the door for the central bank to resume monetary easing and helping it push back against calls for a shake up of its policy framework.

Consumer price index figures due Tuesday are expected to show a 5% increase in December from a year earlier, returning to the Reserve Bank of India’s target range of 2% to 6%. Prices rose quicker than 6% in 11 of the 12 prior readings, hampering the RBI’s ability to counter the pandemic-driven downturn.

The price moderation couldn’t come at a better time for central bank Governor Shaktikanta Das, with