.jpeg)
Food inflation will decline as India grows, according to an MPC member
Inflation: Emphasizing that food accounts for a higher share of the household budget in India, Goyal said policies need to focus on increasing agricultural productivity, as stable agricultural prices are important for growth beyond inflation.
The problem of high food inflation in India will be "less severe" in the future as modern supply chains with diverse sources can help deal with sudden spikes in prices of specific food items. These things were said by Ashima Goyal, a member of the Monetary Policy Committee (MPC) of the Reserve Bank of India on Thursday.
Emphasizing that the share of food in the household budget in India is high, Goyal said policies need to focus on increasing agricultural productivity, as stable agricultural prices are important for growth beyond inflation.
Goyal said, “As India develops, the severity of this problem (high food prices) will reduce due to many reasons. “Modern supply chains with diverse sources will help us cope with rising prices of specific commodities.”
