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Inflation target is most advisable is 1 to 2%

Inflation targeting is a central banking policy which revolve around adjusting monetary policy to achieve a specified annual rate of inflation. The principle of inflation targeting is based on the belief that long-term economic growth is  always achieved at the best by maintaining price stability, and in turn price stability is achieved by controlling inflation.

Inflation targeting can be contrasted to other policy goals of central banking which  includes the targeting of exchange rates or  unemployment and national income.

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