India's food inflation likely to ease by end of FY25, highlights RBI MPC minutes
food inflation is expected to ease by Q4 of this fiscal (FY25) on better kharif arrivals and rising prospects of a good rabi season, highlighted the Reserve Bank of India's latest report.
The RBI-led rate setting panel, Monetary Policy Committee, in the minutes of October meet, has highlighted that the sowing of key kharif crops are higher than last year and the long-period average.
«Sufficient buffer stocks for cereals are available for ensuring food security. Adequate reservoir levels, the likelihood of a good winter and favorable soil moisture conditions augur well for the ensuing rabi season, though adverse weather events remain a risk,» it added.
Firms polled in the Reserve Bank enterprise surveys expect input cost pressures to ease; however, the very recent upturn in key commodity prices, especially metals and crude oil needs to be closely monitored.
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