We Have Not Let Inflation Cross 6 Per Cent: PM Modi In Independence Day Speech

New Delhi: Prime Minister Narendra Modi gave his backing to a new inflation target in his speech from the Red Fort this morning, saying his government had brought down consumer price growth from double digits under the last government.

Delivering his third Independence Day address, PM Modi backed the 4 per cent inflation target, within a range of 2 percentage points either way that had been agreed with outgoing Reserve Bank of India Governor Raghuram Rajan.

"I will make every effort I can to ensure that the poor do not have to pay more for food," the Prime Minister pledged, noting that "Under the previous government, inflation had crossed 10 per cent. Under our efforts, we have not let it go above six per cent."

The government formally "notified" the medium-term inflation target just before Mr Rajan held his final policy meeting on August 9. Figures last Friday showed inflation nudging over 6 percent, outside the target range.