Inflation Target
An inflation target is a stated numerical goal for the rate at which prices rise, typically set by a central bank to anchor price expectations and guide monetary policy over a medium-term horizon. Targets are usually expressed as an annual percentage and may include tolerance bands around the target.
Example: A central bank announces an inflation target of 2% with a tolerance band around the target and describes the policy steps it will take if inflation drifts from the target.
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