New Delhi, Sept. 2 -- Inflation targeting has served India well over the past nine years. Among several pieces of supporting evidence are two that I usually prefer. One, Indian inflation was much higher than global inflation, and even inflation in comparable Asian countries, before India switched to inflation targeting. That gap has now narrowed.

Two, price shocks in sectors such as food have generally not spilled over into the rest of the economy to morph into generalized inflation, a sign that economic agents have growing confidence that the Reserve Bank of India (RBI) will not allow prices to get out of control.

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It is for reasons such as these that most ec...