India, Jan. 5 -- The government is likely to retain the Reserve Bank of India's inflation target, as the existing mechanism is seen as effective in managing inflation in the world's fourth largest economy.

The government is unlikely to change the RBI inflation target target, finance ministry officials told Bloomberg, asking not to be identified as the discussions are still private. The Union Ministry of Finance didn't immediately respond to request for comment.

In place since 2016, the RBI's inflation-targeting framework has helped contain price volatility, including during supply shocks triggered by geopolitical events. The central bank currently aims to keep inflation anchored around 4% - the mid-point of a 2%-6% range mandated by the...