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Govt keeps inflation target at 2-6% for 5 years: DEA secretary Tarun Bajaj

Economists welcome decision, but argue for a higher upper limit

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The CPI rose to 5 per cent in February, from 4.1 per cent in January, because of increased food and fuel prices, which jumped 3.87 per cent and 3.53 per cent, respectively

Shrimi ChoudharyAnup Roy New Delhi/Mumbai
The Centre, on Wednesday, kept the inflation target of the monetary policy framework unchanged at 2-6 per cent for the next five years, until the fiscal year 2025-26. 

The 4 per cent anchor point target for inflation -- with an upper tolerance limit of 6 per cent and a lower limit of 2 per cent, measured in terms of consumer price index (CPI)-based inflation -- was set by the government in consultation with the Reserve Bank of India (RBI) in 2016 and its validity expired on Wednesday.

“We decided to keep the inflation target as it is for the next five years,”'