“A bumper kharif (summer crop) harvest is expected to moderate food inflation in the coming months,” the report said.
India expects food inflation to slow in the coming months due to bumper summer crop yields and remains “cautiously optimistic” about its economic growth, according to a government report. “A bumper kharif (summer crop) harvest is expected to moderate food inflation in the coming months,” the report said.
India’s retail inflation hit a 14-month high in October due to higher vegetable prices. It said favorable monsoon, adequate reservoir levels and higher minimum support prices are likely to boost winter crop sowing and production.
“Early trends for November suggest a softening in core food prices, although geopolitical factors may continue to weigh on domestic inflation and supply chains,” it said. The report said several high-frequency indicators of economic activity in India showed improvement in October after a period of softening.
Persistent high inflation has hit the budgets of India’s middle class, slowing urban consumption in the past few months and threatening rapid economic growth. India expects the economy to grow at 6.5%-7% in the fiscal year ending in March.
The report said India’s export recovery may face challenges due to softening demand in developed markets, while trade in services will remain subdued. It says, “Geopolitical developments and policy decisions of the next administration in the United States will determine the direction of trade and capital flows.”
(Disclaimer: Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
notes
notes
