NEW DELHI – Inflationary pressure in India caused by global uncertainty and domestic disruptions will require greater vigilance by the government and the Reserve Bank of India, the finance ministry said in its monthly economic report on Tuesday.
"Global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months, warranting greater vigilance by Government and the RBI," the government said."The price pressure in food items is expected to be transitory, as evident in the steady performance of the agriculture sector, along with fresh arrivals in the market," it said.
India is bracing for its driest August in more than a century, with scant rainfall likely to persist across large areas, partly because of the El Nino weather pattern. Last month, India surprised buyers by imposing a ban on the export of widely consumed non-basmati white rice, following a ban on broken rice exports last year.