Volatile prices of tomatoes, onions, and potatoes challenge the monetary policy in India

게시됨 2024년 8월 9일

Tridge 요약

The SBI report highlights the challenges posed by the fluctuating prices of key food items like tomatoes, onions, potatoes, and pulses to the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI}. The report anticipates that the Consumer Price Index (CPI) will surpass the RBI's target of 4% in all quarters up to the first quarter of FY26, reflecting the persistent inflationary pressures in the economy. Despite the potential impact of a La Nina event and improved monsoon, the SBI maintains its CPI estimate for FY25 at 4.7%. RBI Governor Shaktikanta Das expects a decrease in inflation from July, attributed to the improved monsoon and signs of global food price stabilization.

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원본 콘텐츠

New Delhi: The ongoing volatility in the prices of key food items such as tomatoes, onions, and potatoes (collectively known as TOP) and pulses continues to pose significant challenges for the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), highlights a report by SBI. “Current volatility in prices of TOP and pulses continues to challenge the MPC, keeping the headline above target at 5.1 percent in June 2024,” said the report. “The currently above-normal monsoon and sowing, backed up by a potential La Nina event later, promise reprieve in later quarters,” said the report. Importantly, the report added that it is now expected that the CPI will remain above the RBI’s medium-term target of 4 per cent in all quarters up until the first quarter of FY26. This persistent overshoot highlights the ongoing inflationary pressures in the economy. “Notably, now the CPI is expected to be above RBI’s target of 4 per cent in all quarters till Q1FY26,” the report added. However, ...

출처: Theprint