Food inflation in India remains above the ‘comfort’ level in New Delhi despite easing retail inflation. Retail inflation in India dropped to a four-month low of 4.87% in October. Food inflation accounted for nearly half of the consumer price basket and was 6.61% in October. A government official expressed the desire for overall moderation in food prices, which have been volatile. Vegetable, milk, and cereal prices were key drivers of inflation, according to the official. RBI Governor Shaktikanta Das also highlighted the risks posed by a spike in food prices.
The pace of India’s economic expansion in the September quarter will likely exceed expectations, central bank governor Shaktikanta Das said Tuesday. India’s strong growth prospects remain largely unaffected by the global trade slowdown and rise in risk-free rates.
RBI governor Shaktikanta Das has emphasized the need for supply side interventions to address the impact of rising vegetable inflation, specifically tomato prices. Despite the easing of core inflation, headline inflation has increased due to spikes in vegetable prices. Das highlighted the importance of managing food prices and cautioned about the risks of recurring food price shocks. Read more to understand the governor’s perspective on the inflation outlook.
