Even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further, says a report.
According to Dun & Bradstreet, rising fuel prices in India, which touched an all-time high, is likely to feed in to other segments and keep the rate of inflation higher.
D&B expects CPI inflation to be in the range of 4.6-4.7 per cent and WPI inflation around 3.6-3.8 per cent this month. “The assumption of a normal monsoon has been one of the primary factors considered for improvement in demand in the current year.
“However, spatial distribution of rainfall needs to be monitored carefully before setting in firm expectations as uneven distribution of rainfall could flare up food inflation,” said Arun Singh, Lead Economist D&B India. Read More
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