(October, 2025): GST Rate Rationalisation to Curb Inflation
The GST Council approved a simplified two-tier tax structure (5% and 18%) to reduce the tax burden on essentials. This rationalisation is expected to lower CPI inflation by 10-15 basis points for food items and 5-10 basis points for services
(October, 2025): Challenges of Persistently Low Inflation
With CPI inflation falling to 2.07% and WPI to 0.52% in August 2025, concerns were raised regarding “slower Nominal GDP growth” and weaker tax revenues. While beneficial for consumers, persistently low inflation risks straining the government’s fiscal deficit ratios
(October, 2025): Review of RBI’s Flexible Inflation Targeting (FIT) Framework
As the current FIT framework expires in March 2026, the RBI released a discussion paper seeking views on retaining the 4% headline CPI target. Most stakeholders supported continuing the existing parameters (4% target with a 2-6% tolerance band) to anchor inflation expectations,,.
(September, 2025): OECD Projects Moderating Inflation for India
The OECD Economic Outlook report upgraded India’s GDP forecast to 6.7% for 2025 while projecting a moderation in inflation to 2.9%. This highlights a trend of reduced inflationary pressures amidst global economic uncertainty
(July, 2025): India’s “Goldilocks Moment” with Low Inflation
The Finance Ministry described the Indian economy as being in a “Goldilocks Moment”—characterized by robust growth accompanied by low inflation. Retail inflation dipped to a 75-month low of 2.82% in May 2025, aided by the RBI’s accommodative monetary policy
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Inflation, Deflation and Price Stability Current Affairs ▼
(October, 2025): GST Rate Rationalisation to Curb Inflation
The GST Council approved a simplified two-tier tax structure (5% and 18%) to reduce the tax burden on essentials. This rationalisation is expected to lower CPI inflation by 10-15 basis points for food items and 5-10 basis points for services
(October, 2025): Challenges of Persistently Low Inflation
With CPI inflation falling to 2.07% and WPI to 0.52% in August 2025, concerns were raised regarding “slower Nominal GDP growth” and weaker tax revenues. While beneficial for consumers, persistently low inflation risks straining the government’s fiscal deficit ratios
(October, 2025): Review of RBI’s Flexible Inflation Targeting (FIT) Framework
As the current FIT framework expires in March 2026, the RBI released a discussion paper seeking views on retaining the 4% headline CPI target. Most stakeholders supported continuing the existing parameters (4% target with a 2-6% tolerance band) to anchor inflation expectations,,.
(September, 2025): OECD Projects Moderating Inflation for India
The OECD Economic Outlook report upgraded India’s GDP forecast to 6.7% for 2025 while projecting a moderation in inflation to 2.9%. This highlights a trend of reduced inflationary pressures amidst global economic uncertainty
(July, 2025): India’s “Goldilocks Moment” with Low Inflation
The Finance Ministry described the Indian economy as being in a “Goldilocks Moment”—characterized by robust growth accompanied by low inflation. Retail inflation dipped to a 75-month low of 2.82% in May 2025, aided by the RBI’s accommodative monetary policy
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