The Reserve Bank of India (RBI) cautioned that external factors such as worsening geopolitical tensions and unpredictable weather events could pose significant risks to inflation. In the October 2024 monetary policy update, Governor Shaktikanta Das noted that while food inflation pressures could ease later this year, these risks remain substantial.
Unexpected events could lead to volatility in commodity prices, further complicating the inflation outlook. The central bank is closely monitoring these external risks, indicating that any relief in inflation could be fragile and subject to shocks.
Disclaimer: This article is based on the RBI’s official statements during its October 2024 Monetary Policy Committee meeting.
