NEW DELHI, Aug 31 (Reuters) – Higher food inflation could squeeze spending on non-food discretionary items by absorbing a larger share of household disposable income, the Indian government said in its monthly economic report on Monday.
Here are details from the report
• The outlook for domestic food inflation and agricultural output is uncertain because of an intensifying El Nino, which is expected to peak in late 2026.
• Food prices, global commodity trends, and weather-related risks remain drivers for inflation.
• Despite an uncertain global economy, India’s economic activity, inflation and external position have remained relatively stable.
• Resilient domestic demand has supported growth despite some moderation in the pace of expansion.
• The Indian government is tracking sovereign bond markets globally.
• A move in Indian bond yields in either direction poses risks.
(Reporting by Nikunj Ohri; Editing by Alison Williams and Barbara Lewis)
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