Types of Inflation — Policy Reforms

Entry	Year	Description	Impact
RBI Act Amendment	2016	Amended the Reserve Bank of India Act, 1934 to provide statutory backing for inflation targeting framework. Established price stability as the primary objective of monetary policy with a mandate to maintain CPI inflation at 4% with a tolerance band of +/- 2%.	Transformed India's monetary policy framework from multiple indicator approach to formal inflation targeting, providing clear institutional mandate for managing different types of inflation through systematic policy responses and enhanced central bank accountability.