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19.11 - 19:46
Inflation has dipped but risks of another upsurge loom
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RBI) 6% upper tolerance limit. For a large part, that decline had a seasonal correction in vegetable prices and the government’s slashing of cooking gas prices to thank.
But risks of a fresh upsurge loom. For one, any spike in crude oil prices if the war in West Asia spreads could stoke inflationary pressures anew.
Also, erratic monsoon rainfall is feared to have hurt India’s summer crop, while the winter crop could also suffer due to low reservoir levels amid potentially patchy rain. Food inflation may not be over as a threat yet.
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