NEW DELHI, Nov. 26 (Xinhua) -- The Monthly Economic Review October 2024 released by India's finance ministry on Monday predicted a slowdown in food inflation due to a bumper summer crop harvest.
While retail inflation rose to a 14-month high of 6.21 percent in October, driven by elevated food prices from supply disruptions caused by heavy rains, the report anticipated that favorable conditions will lower food inflation in the coming months.
The review highlighted India's economic resilience, with steady demand growth, strong manufacturing and service sector activity, and expanding employment, particularly in manufacturing. However, the trade deficit is under pressure from faster import growth, as merchandise exports have seen moderate growth due to weak external demand.
The report warned that India's export recovery may face challenges from softening demand in developed markets and emphasized that global interest rates, geopolitical developments, and U.S. policy decisions will influence trade and capital flows. Concerns over the ongoing Russia-Ukraine conflict have also affected financial markets.■