NEW DELHI- Inflationary pressures in India caused by global uncertainty and domestic disruptions will require greater vigilance by the government and the Reserve Bank of India, the finance ministry said in its monthly economic report on Tuesday.
The ministry’s comments come weeks after data showed retail inflation in July rose to its highest in 15 months, as vegetable and cereals prices skyrocketed.
“Global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months, warranting greater vigilance by Government and the RBI,” the government said.
The finance ministry expects price pressures to abate thereafter.
“The price pressure in food items is expected to be transitory, as evident in the steady performance of the agriculture sector, along with fresh arrivals in the market,” it said.
Prime Minister Narendra Modi will bid for a rare third term at a national election that is due in less than nine months, and containing inflation, especially food prices, would help his chances. – Reuters
