The Union government has notified the inflation target for 2026-2031 under the Flexible Inflation Targeting (FIT) framework. The target stays at 4% Consumer Price Index (CPI) inflation, with a tolerance band of 2% to 6%. FIT was given statutory backing in 2016 through an amendment to the Reserve Bank of India Act, 1934. The RBI pursues the target through its six-member Monetary Policy Committee (MPC). If inflation remains outside the 2-6% band for three consecutive quarters, it is treated as a failure to meet the target.