Economy, | TEMSIAS

Flexible Inflation targeting, a good balance

Review of India’s Flexible Inflation Targeting (FIT) Framework Background India’s Flexible Inflation Targeting (FIT) framework—targeting 4% inflation with a ±2% band —expires in March 2026 . RBI released a discussion paper seeking views on: Headline vs core inflation Acceptable inflation level Whether the inflation band should change Since adoption in 2016, inflation has remained largely range-bound , even during multiple shocks. Why Inflation Control Matters High inflation

Editorials

Shubham Mishra

Nov 152 min read

Price Elasticity of Demand

Have you ever noticed that some products continue to sell even when their prices rise, while others see an immediate drop in demand? For example, if the price of salt increases, most people still buy the same amount. But if apples become expensive, many of us reduce our purchases. This difference in how consumers respond to price changes is known as Price Elasticity of demand. It is one of the most important concepts in economics, and it affects businesses, markets, and ev

GS-3

Shubham Mishra

Nov 132 min read