Normal Monsoon, Rate Cut Key To Bringing Down Inflation By Year-End: Economists

A 40-year old vegetable seller said managing two meals a day has become difficult as people opt for home deliveries rather than buying from vegetable vendors. “Medicines are becoming expensive. We cannot even afford to fall sick these days.”

Economic affairs secretary Ajay Seth on June 16 said inflation in India is mainly because of high energy and food prices and hoped that it would moderate in the coming months. “We are all aware that summer months are difficult months in terms of vegetables and other items,” he said. “High crude prices are certainly a challenge and whatever measures are needed and feasible are being taken.” S&P Global Ratings economist Vishrut Rana said higher global commodity prices are a key driving factor for inflation and the outlook for food inflation, which has a heavy weightage in the overall CPI basket, will depend on the monsoon – sufficient rains will help agricultural produce and help rein in prices.