Inflation Targeting in the Time of Supply Shocks

India's Phillips curve looks flat across 1997–2025, a period that spans the Reserve Bank of India's 2016 move to flexible inflation targeting. We ask whether that flatness survives once demand shocks are separated from supply shocks.

The pooled output-gap slope is zero. But conditioning on the shock, the demand-pull slope is +2.2 before targeting and zero afterward, while the supply slope stays negative — the signature of a central bank offsetting demand before it reaches prices.

A large language model reading the Reserve Bank's own assessments, blind to the output gap, recovers the same regime contrast across three model families. We identify which channel flattened, scaling narrative identification with AI.