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Weather, rise in international agricultural commodity prices pose upside risks to food inflation, warns RBI in MPC Minutes
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inflation despite expectations of it softening ahead.
«Going forward, food inflation is likely to soften in Q4 with seasonal easing of vegetables prices and kharif harvest arrivals; and good soil moisture conditions along with comfortable reservoir levels auguring well for rabi production.
Adverse weather events and rise in international agricultural commodity prices, however, pose upside risks to food inflation,» said the MPC Minutes.
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