After surging since November, food prices, which make up about half of the consumer price index (CPI) basket, eased last month, according to economists in the Feb. 5-8 Reuters poll. Headline inflation, as measured by the annual change in the CPI, was forecast to fall to 5.09% in January from 5.69% in December, the survey of 44 economists showed.
The decision on allowing sugar exports during the current 2023-24 marketing year (October-September) will be taken after the agriculture ministry comes out with the production estimates of sugarcane, Union Food Secretary Sanjeev Chopra said.
India s food ministry has said that the forecast for rain in the country this month should limit damage to crops, ensuring sufficient supplies. Rising food prices have been a major concern for the government, leading to restrictions on rice exports and the sale of state reserves. Wheat supplies are also sufficient, and the government is considering whether to scrap import duties.
India Food Prices: Nomura predicts India s retail inflation rate may exceed the central bank s 6% tolerance ceiling again due to sticky pulses and cereal prices, leading policymakers to raise the inflation target in August. Nomura expects headline inflation to increase to 6%-6.5% in July and August from June s 4.8%, before settling in the 5%-6% range in the remainder of the fiscal year FY24. Nomura also pushed back the rate cut chances by the RBI s Monetary Policy Committee to February next year.
Nomura predicts India s retail inflation rate may exceed the central bank s 6% tolerance ceiling again due to sticky pulses and cereal prices, leading policymakers to raise the inflation target in August. Nomura expects headline inflation to increase to 6%-6.5% in July and August from June s 4.8%, before settling in the 5%-6% range in the remainder of the fiscal year FY24. Nomura also pushed back the rate cut chances by the RBI s Monetary Policy Committee to February next year.