Daily price data give a strong indication that food inflation dropped in May, most likely as supply disruptions eased a touch and agricultural activity was allowed to resume. With global oil prices low and domestic demand collapsing, there is little upside risk to the inflation outlook. That should allow the RBI to continue loosening policy to support the economy and ensure financial stability.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.