Answer-According to the Economic Survey 2023-24, what measures helped reduce core inflation in India to a f...

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Prudent monetary policy response and calibrated trade policy measures along with strong output growth, helped reduce core inflation in India to a four-year low in FY24   Prudent Monetary Policy Response    Interest Rate Adjustments   The Reserve Bank of India RBI implemented a series of interest rate hikes to absorb excess liquidity from the economy. Specifically, the policy repo rate was increased by 250 basis points from 4 in May 2022 to 6.5 in February 2023.  This tightening of monetary policy helped to control inflationary pressures by making borrowing more expensive, which in turn reduced spending and investment, leading to lower demand-pull inflation.    Inflation Targeting   The RBI maintained a commitment to its inflation targeting framework, which aims to keep inflation within a target range of 2-6. By focusing on this goal, the RBI took proactive measures to ensure that inflationary expectations were anchored, thereby preventing a wage-price spiral.

According to the Economic Survey 2023-24, what measures helped reduce core inflation in India to a four-year low in FY24?

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