A new research report warns of a high probability of an El Niño event through November, raising concerns over food inflation in India. Despite healthy reservoir levels and vegetable supplies, higher fuel costs and weather uncertainties could push inflation to 5.2–5.5% in FY27
Chief Economic Advisor V. Anantha Nageswaran has cautioned that India’s inflation outlook faces fresh risks due to rising crude oil and commodity prices triggered by the Iran-US conflict. While India enters this phase with strong macroeconomic fundamentals, policymakers face the challenge of containing inflation without undermining growth.
