Inflation likely to be a big focus area for budget 2024, say sources

Inflation control is a top priority for the administration, sources informed CNBC-TV18 as the countdown to the 2024 budget gets underway. According to sources, the administration has been worried about the high cost of commodities and anticipates that they will be high for the duration of the year. Retail inflation in India jumped in November and peaked three months later at 5.55 per cent, according to statistics released on December 12 by the National Statistics Office (NSO). This was a modest decline from the 5.88 per cent reported in November of the previous year, but a rise over October’s 4.87 per cent. According to NSO statistics, the food basket showed a particularly strong inflationary tendency, with a rate of price increase of 8.7 per cent, up from 6.61 per cent in October and 4.67 per cent in November 2022. The administration is particularly concerned about the persistently high costs of fertilisers, and expects little respite in this area. Furthermore, weather-related occurrences are expected to present issues for a variety of food products, including tomatoes and onions, while staple commodities such as wheat, rice, and lentils are particularly vulnerable. It was also revealed to CNBC-TV18 that the administration plans to change its current export and GDP goals. This adjustment will account for the economic consequences of the Red Sea situation, which are projected to have a significant impact.