India's rural inflation outpaces urban inflation due to heat waves causing crop damage and livestock mortality.

India's inflation is experiencing a "K-shaped" pattern, disproportionately impacting rural consumers, according to a report by HSBC. Rural inflation outpaced urban inflation by 1.1 percentage points in May, mainly driven by soaring food prices. This trend is attributed to ongoing heat waves causing crop damage and livestock mortality, which in turn drive up food inflation despite lower core inflation levels.

June 25, 2024
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