Food Inflation Expected To Soften On The Back Of New Crop Arrival

According to Reserve Bank of India (RBI) Governor Sanjay Malhotra, India's headline inflation rate has registered a sequential moderation in November and December, standing at 5.2 per cent currently. This downward trend is expected to continue, with food inflation pressures likely to soften significantly due to good kharif production, winter easing, and a reduction in vegetable prices. "Headline inflation after moving above the upper tolerance band in October has since registered a sequential moderation in November and December standing at 5.2 per cent now," Malhotra said. "Going ahead food inflation pressures absent any supply side shocks should see a significant softening due to good kharif production. Winter easing as we witness, reduction in vegetable prices and a favourable rabi crop prospect."