News > Experts welcome moderation of inflation in July but warn of pressure ahead

Experts welcome moderation of inflation in July but warn of pressure ahead

While the moderation in CPI inflation is welcome, experts caution that the road ahead could be bumpy. The sequential momentum in food prices remains strong, with a 2.5 per cent month-on-month increase in prices, higher than the average sequential growth, indicating that inflationary pressures may persist. The uneven distribution of monsoon rainfall and the potential for excess rainfall in the coming months pose additional risks to food prices.