Reserve Bank Governor Shaktikanta Das, in a recent address at Devi Ahilya University in Indore, expressed optimism regarding a forthcoming decline in inflation, foreseeing a moderation starting in September. He attributed this expectation to various factors, including a decrease in the cost of vegetables such as tomatoes, restrictions placed on non-basmati rice exports, and reductions in domestic LPG cylinder prices.
According to Governor Das, the decline in tomato prices has already begun, and it is anticipated that the retail prices of other vegetables will follow suit in the coming month. He acknowledged the government’s efforts to ensure the availability of essential items at affordable rates, highlighting measures such as curbing non-basmati rice exports and recent reductions in domestic LPG cylinder prices.
Government data indicated that retail inflation had surged to 7.44 percent in July, marking its highest level in the past 15 months. Governor Das pointed out that July’s retail inflation rate had taken many by surprise, largely due to the elevated costs of tomatoes and other vegetables.