<h1>Inflation Targeting: A Resilient Monetary Policy Adapting to Global Challenges, Climate Change, and Digitalization.</h1> Inflation targeting (IT) has become a prevalent monetary policy framework worldwide, particularly among emerging market economies. It has proven resilient through economic challenges like the global financial crisis and COVID-19 pandemic. IT's success is attributed to its flexibility, transparency, and credibility. Recent reviews suggest refinements, such as focusing on headline inflation and periodic assessments. Innovations include the US Fed's averaging inflation targets and emerging markets' use of foreign exchange interventions. Challenges ahead include climate change impacts and digitalization, which may alter policy dynamics. India's flexible IT framework emphasizes price stability while accommodating growth, showcasing adaptability to external shocks.