Climate change is causing structural shifts in India’s inflation dynamics-forecasting must adapt
With weather disruptions turning supply shocks more frequent, India’s inflation targeting framework needs to formally incorporate climate-driven price-instability risks for effective monetary policy action. Other central banks are moving on it.
As India becomes increasingly vulnerable to climate change, its implications for inflation can no longer be ignored. Climate risk is now inflation risk too, requiring monetary policy frameworks to evolve and reflect this reality.
The Reserve Bank of ... [5044 chars]
