The Reserve Bank of India (RBI) released its April 2024 Economic Bulletin and highlighted that extreme weather conditions may pose a risk to inflation, along with prolonged geopolitical tensions that could keep crude oil prices volatile. The RBI also said that India’s monetary policy continues to remain disinflationary and the robust economic growth gives the policy to make space for price stability
Food price uncertainties continue to weigh on the inflation trajectory going forward. A record rabi wheat production would help temper price pressure and replenish the buffer stocks. Early indication of a normal monsoon augurs well for the kharif season, while international food prices also remain benign.
‘’The tight demand supply situation in certain categories of pulses and the production outcomes of key vegetables warrant close monitoring, given the forecast of above normal temperatures in the coming months. Frequent and overlapping adverse climate shocks pose key upside risks to the outlook on international and domestic food prices,” said the RBI.
