Inflation targeting

NEW DELHI: The government suggested whether the country needed a more flexible timeline for its inflation targets given the need to help indebted companies lower their debt levels, according to its mid-year economic report out on Friday. The Reserve Bank of India Governor Raghuram Rajan has set a target for consumer inflation of five per cent by March 2017 and four per cent in the medium term, as part of his ‘glided path’ approach to monetary policy. Analysts have said achieving those objectives could be challenging given India’s history of volatile food prices.