Inflation feared to rise in India after unseasonal rains

NEW DELHI, Nov. 8 (Xinhua) -- Retail Inflation is hovering around 7.5 percent in India, which is already on the higher side if compared to the standard set by the country's central bank, the Reserve Bank of India (RBI).

The rate of inflation has remained above the RBI's upper tolerance level of 6 percent through the first three quarters of India's financial year 2022-23 (April 2022 - March 2023).

Food inflation, which accounts for nearly 40 percent of the Consumer Price Index basket, rose to 8.60 percent in September, compared to 7.62 percent in August, according to official figures. Retail food prices accelerated due to a rise in the prices of basic cereals, pulses and vegetables.

The fear of a further rise in food inflation looms large after unseasonal rains in October rendered heavy damage to crops in many parts of the country. Crops of pulses and other cereals, including some oil seeds, have been damaged to the extent of 85 percent in some agrarian belts, mostly the central, northern and south-western parts of the country.