Shumita Sharma Deveshwar

Director of India Research
+44 203 006 3102

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The monsoon cannot cure inflation

Overview

The monsoon has got off to a weak start. Even if the India Meteorological Department’s prediction of normal rainfall proves to be more accurate than its mediocre forecasting track record would suggest, food inflation will ease only from September onwards. The government, which exerts a strong influence on the central bank, is focused optimistically on that prospect; but the challenge of inflation to Indian policymakers now extends far beyond seasonal and climatic...

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