The finance ministry has cautioned that global and regional uncertainties and domestic disruptions may keep inflationary pressures elevated in the coming months, warranting 'greater vigilance' by the government and the Reserve Bank of India (RBI).
'Russia's decision to terminate the Black Sea grain deal, along with dry conditions in major wheat-growing areas, caused a price spike in cereals. Domestic factors like white fly disease and an uneven distribution of monsoon exerted pressure on vegetable prices in India,' the ministry said in its latest Monthly Economic Report for July, released on Tuesday.
However, the report maintained, the recent price surge in certain food items 'is expected to be transitory'. 'Tomato prices are likely to decline with the arrival of fresh stocks by the end of August or early September.