India expects slower food inflation in coming months

India expects food inflation to decrease in the upcoming months due to a successful summer crop harvest, as the government remains cautiously optimistic about economic growth, an official report said.

Retail inflation reached a 14-month high in October, mainly due to high vegetable prices. Favourable monsoon conditions, sufficient reservoir levels, and higher minimum support prices are expected to boost winter crop sowing and production.

Early November data suggests a decrease in key food prices, but geopolitical factors could still affect domestic inflation and supply chains. High-frequency indicators show a rebound in economic activity in India in October after a slight slowdown.

Attribution: Reuters

Subediting: M. S. Salama