Mumbai: Vegetable prices in India have already begun to soften and inflation in this segment is likely to decline from September, Reserve Bank of India (RBI) Governor Shaktikanta Das said in a speech on Wednesday.
Annual retail inflation in July rose 7.44%, its highest in 15 months, as vegetable and cereal prices skyrocketed.
Geopolitical tensions could hamper the food price outlook but the outlook for cereal prices looks bright, Das said.
He said despite core inflation in the country remaining elevated, the steady easing seen in the last few months indicates that monetary policy transmission is happening.
The central bank remains firmly focused on aligning inflation to the Monetary Policy Committee’s (MPC) mandated medium-term target of 4%, Das said.
The RBI will be on guard to ensure the second-order impact of inflation is not persistent, he added.
(Writing by Swati Bhat; Editing by Pooja Desai)
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