RBI has the mandate to keep retail inflation at 4 per cent with a bias of plus/minus 2 per cent on either side. The six-member MPC, headed by the RBI Governor, decides on the monetary policy keeping in mind this inflation target band. Retail inflation eased to a 16-month low of 4.06% in January mainly on account of softening of food and vegetable prices, government data showed on Friday. The retail inflation stood at 4.59 per cent in December 2020 and 7.59 per cent in January 2020. The previous low for retail inflation was in September 2019 at 4 per cent.

Source: Mint February 26, 2021 08:19 UTC