Persistent geopolitical conflicts and geoeconomic fragmentation can also exert upward pressure on global commodity pricing and supply chains, the paper stated. According to the Reserve Bank of India’s (RBI) Financial Stability Report, the increasing frequency of weather phenomena including heat waves and unexpected rains continues to be a risk factor for food inflation dynamics.
On the other hand, the report stated that the dynamics of food inflation are still at danger due to the increasing frequency of extreme weather events, such as heat waves and unexpected rains.
The paper went on to say that ongoing geopolitical crises and geoeconomic fragmentation can also put upward pressure on commodities prices and global supply chains.
Food inflation decreased from 10.9 percent in October to 9 percent in November.
Some of the categories remained in double digits, despite food inflation easing from a 15-month high of 10.9 percent in October to 9 percent in December.
In November, the inflation rate for potatoes was a record 66.6 percent, up from 64.9 percent the month before, and the inflation rate for carrots was 33.4 percent, up from 22.8 percent.
Some pulses were moving above 20 percent, while garlic inflation was still high at above 80 percent.