Archive · 22 Jul 2026
RBI Staff Predicts Limited Food Inflation Impact
The Reserve Bank of India's staff said that even though the monsoon has been uneven and delayed the planting of kharif crops, the impact on food prices is likely to be small.
This is because there are plenty of food grains in storage.
They also mentioned that food prices are already going up, but the overall economy is doing well.
The economy is growing fast, and there are good signs in trade and investments.
Uneven monsoon has delayed kharif sowing but high foodgrain stocks may limit food inflation impact.
Retail food inflation rose to 5.32% in June, pushing headline CPI inflation to 4.38%.
India received 21% less rainfall than normal between June 1 and July 21.
Indian economy remained strong in June with robust industrial and services sectors.
External trade and foreign investments are showing positive trends.
- Who
- Reserve Bank of India (RBI) staff
- What
- Predicted limited impact of delayed kharif sowing on food inflation due to high public foodgrain stocks
- When
- July Bulletin
- Where
- India
- Why
- To assess the impact of the uneven monsoon on food inflation and economic conditions
Optimistic View
Pessimistic View
Monsoon Impact on Food Inflation
Optimistic View
High public foodgrain stocks will mitigate the impact of delayed kharif sowing on food inflation.
Pessimistic View
The uneven monsoon and rising food prices could lead to significant inflation despite current stock levels.
- Rainfall
- 276.8 mm (21% lower than normal)
- Monsoon Projection
- 90% of long-period average
- Retail Food Inflation
- 5.32% in June
- Headline CPI Inflation
- 4.38% in June
- RBI's Inflation Target
- 4%
- Foreign Exchange Reserves
- Comfortable level