India’s headline inflation may be contained in coming months: Govt

Despite domestic inflationary pressures in India, headline inflation may be contained in the coming months, the latest edition of the Monthly Economic Review by the economic affairs department of the Ministry of Finance said.“As the global environment continues to evolve, inflation readings may remain relatively contained in the coming months. Recent easing in global commodity markets, a correction in crude oil prices, and softening of key input prices such as urea may help moderate imported inflationary pressures,” the report said.

Despite domestic inflationary pressures in India, headline inflation may be contained in the coming months, the Monthly Economic Review by the Ministry of Finance said.
Though the normalisation of global supply chains and trade flows to pre-conflict levels may take time, the decline in international commodity prices is expected to provide some cushion against further price pressures, it observed.

“Given the ongoing West Asia crisis and the subsequent global price shock, domestic inflationary pressures appear to be on an upward trajectory, particularly as fuel and energy price shocks diffuse domestically,” it noted.

Though the normalisation of global supply chains and trade flows to pre-conflict levels may take time, the decline in international commodity prices is expected to provide some cushion against further price pressures, the report observed.

“Government interventions, adequate buffer stocks of key agricultural commodities, and continued supply-side management measures also help mitigate potential supply disruptions,” it said.

“Overall, the economy continues to exhibit resilience.” However, moderation in select high-frequency indicators suggests some easing in momentum.

The uneven distribution of monsoon rainfall, emerging El Nino conditions, and geopolitical uncertainties will continue to shape the outlook.

Fibre2Fashion News Desk (DS)