Standard Chartered Warns of Rising Inflation Risks in India Due to Deficient Monsoon

Standard Chartered Bank economist Saurav Anand has highlighted increasing inflation risks for India, driven by weather-related factors. Deficient monsoon rains, compounded by the ongoing El Niño event, are threatening agricultural production. Key indicators show that sowing activity has declined and reservoir levels remain low, particularly affecting crops such as pulses, vegetables, sugar, and oilseeds. The report underscores the potential for food-price pressures to feed into broader inflation, posing a challenge for monetary policy.