India's heatwave in vegetable-producing states leads to food price spikes and potential inflation overshoot.
The ongoing heatwave in top vegetable-producing states in India is causing a decline in potato, onion, and tomato supplies, leading to spikes in food prices. This may push retail inflation beyond the Reserve Bank of India's projections for the first two quarters of the year. Food inflation is expected to remain above 7.5-8% in the next two-three months, potentially causing consumer price inflation to overshoot RBI's projections.
June 27, 2024
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