Monsoon-led inflation spikes on the decline

The spike in food inflation during years of poor rainfall has been less severe in recent than in years preceding decades.

- ASHLI VARGHESE

Key drought years have seen food inflation spike to double-digits in the 1960s and 1970s, shows data from DSP Asset Managers July 2023 Netra report. This has tapered to largely single-digit levels in key drought years after the turn of the century.

The official forecast suggests rainfall to be within 96 per cent of the long period average. Private agency Skymet forecasts below normal rainfall at 94 per cent of the long period average.