Key Points
The Reserve Bank of India, in its monthly bulletin, noted that though CPI headline inflation softened further during March-April, the exceptionally hot summer season and low reservoir levels may put stress on the summer crop of vegetables and fruits..
The severe heatwave's impact may hinder the final stage of disinflation as the central bank aims to reach a 4% retail inflation target, disrupted by fluctuating high food prices...
Adverse weather conditions tend to impact food prices negatively, however, the issues are not restricted to price rise.. "India is particularly vulnerable to losing labour productivity due to heatwaves as a large section of its workforce is engaged in outdoor work at this time of the year, as in agriculture, construction and mining..
The cost of non-veg thali declined due to a drop of approximately 16 per cent on-year in the prices of broiler..
The prices of pulses surged by 21 per cent on-year due to lower reservoir levels which impacted the production..
