CEA expects food inflation to ease with unlock, good monsoon

Chief Economic Adviser K V Subramanian said food inflation is likely to moderate on account of the twin impact of opening up of economic activities and good monsoon. 

New Delhi: Attributing the rise in food prices to restrictions imposed by several states during April-May to deal with the second wave of COVID-19, Chief Economic Adviser K V Subramanian said food inflation is likely to moderate on account of the twin impact of opening up of economic activities and good monsoon. Moreover, the Chief Economic Adviser (CEA) asserted that high food inflation has not impacted a large section of the population as they are being given free ration under the Pradhan Mantri Garib Kalyan Yojana. "Some of the increase in food inflation in the recent print has been because of the restrictions that have been placed...We even saw last year when the lockdown happened and the supply side was affected, impacting food inflation, which in turn then led to an impact on CPI inflation. "So I think that's a contributing factor and given that now a lot of the restrictions are getting eased, I do expect that food inflation should moderate," he told PTI in an interview.