The Finance Ministry in its monthly economic review has flagged geopoitical factors will continue to impact domestic inflation and supply chains, despite expecting a moderation in prices of key food items.
“Early November trends signalled moderation in key food prices, though geopolitical factors may continue to impact domestic inflation and supply chains,” read Finance Ministry’s monthly economic review.
Further talking on inflation, the ministry said that the inflation trajectory will largely be influenced by the price movements in edible oils, tomato, onion and potato. “On the positive side, the early trend visible in vegetable prices in November so far signals significantly lower inflation in tomato and onion,” said the economic review.
India’s retail inflation surged to a 14-month high in October over 6.21 per cent, driven by high vegetable prices.
“A bumper kharif (summer crop) harvest is expected to lower food inflation in the coming months,” the report said.
“Early November trends signaled moderation in key food prices, though geopolitical factors may continue to impact domestic inflation and supply chains,” it said.
US to decide the course of trade
Additionally, while expressing concerns over geopolitical tensions, the Finance Minstry has mentioned that
the next administration in the United States after Donald Trump officially takes charge will determine the course of trade and capital flows.(more to come)
