📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • Question

      Retail inflation in India remained below the RBI’s

      lower tolerance level primarily because it stayed under which percentage in December 2025?
      A 1% Correct Answer Incorrect Answer
      B 1.5% Correct Answer Incorrect Answer
      C 2% Correct Answer Incorrect Answer
      D 3% Correct Answer Incorrect Answer
      E 4% Correct Answer Incorrect Answer

      Solution

      In December 2025, retail inflation stood at 1.33%, which is below the RBI’s lower tolerance threshold of 2% under its inflation targeting framework. RBI’s target is 4% with a tolerance band of ±2% (2%–6%), making 1.33% a comfortable level from a monetary policy perspective.

      Practice Next
      ask-question