Rising food prices and a weak monsoon pose risks: India must act early to protect the most vulnerable
Although inflation is rising, it is not yet very high. Price expectations, however, are on the ascent. While supply uncertainty could have pushed prices of vegetable oils up, other food groups seem better insulated. Low inflation in cereals is partly a result of record domestic and global production, along with low international prices. However, it is not current prices that should worry policymakers, but the likely trend ahead. Three factors could create pressures on food and overall inflation.
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