NEW DELHI (Reuters) – India’s food inflation is expected to remain high in the coming months, C Rangarajan head of Prime Minister’s Economic Advisory Council said after releasing a report on the country’s economic performance on Friday.
India’s economy will grow at 6.7 percent in the current fiscal year, less than an earlier estimate of 7.5-8.0 percent, Rangarajan, who was India’s central bank’s former governor, said in the report.
Inflation dropped to 6.87 percent in July from 7.25 percent in June as domestic gasoline and vegetable prices fell in July. But global oil prices have been rising since then and drought in some parts of India is threatening fresh inflationary pressures.
(Reporting by Manoj Kumar; Editing by Anupama Dwivedi)