Economy News

The Reserve Bank of India?s Governor Shaktikanta Das stated today that Food inflation, which was in double-digits in July, has since then moderated to 6.2 per cent in October with the correction in vegetable prices. Going ahead, inflation outlook would be considerably influenced by uncertain food prices. High frequency food price indicators point to an increase in prices of key vegetables which may push CPI inflation higher in the near-term. The ongoing rabi sowing progress for key crops like wheat, spices and pulses needs to be closely monitored. Elevated global sugar prices is also a matter of concern.On the positive side, global commodity prices, particularly, agricultural commodity prices, have softened except rice. For highly import dependent food items like edible oils, international prices continue to remain soft. Domestic milk prices are stabilising. Pro-active supply side interventions by the government are also containing domestic food price pressures.

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