Uncontrolled inflation rates inevitably reduce the popularity of the government and have a huge impact on low-income people. It is the right of the people to know why inflation could not be controlled. Different laws exist around the world to protect rights and ensure smooth flow of information to the public.
Almost all countries have a specific framework for accountability. According to Section 45 of the RBI Act in India, if the central bank – the Reserve Bank of India (RBI) – fails to control inflation for three consecutive quarters, its Governor must submit a written report to the central government within the next month . The report should include an action plan to control inflation and an estimated time-frame for achieving the target.
In the United Kingdom, if inflation exceeds the target, the Governor of the Bank of England must exchange open letters with the Chancellor of the Exchequer (Minister of Finance).
In the letter, the Governor explains why inflation could not be controlled and outlines the steps being taken to achieve the target. Also the letter should be made public on the website of the central bank.