Uneven monsoons, El Niño raise food inflation risk in FY27
In short
Nuvama says uneven monsoons and El Niño could push food inflation higher in FY27. BusinessLine also reported that headline CPI rose 6.1% year on year in October.
What the reporting says
Uneven monsoons and El Niño are raising upside risks to food inflation in FY27, according to Nuvama. BusinessLine also reported that headline CPI rose 6.1% year on year in October and said the RBI may consider another rate hike if inflation pressures persist despite expected normalisation. The note ties weather shocks to price risks and keeps policy-watch on the central bank.
Why it matters
Nuvama flagged upside risks to food inflation in FY27 from uneven monsoons and El Niño. BusinessLine reported headline CPI at 6.1% year on year in October and said the RBI may consider another rate hike if inflation pressures persist despite expected normalisation. The story links weather-driven food prices with monetary policy expectations, especially for households and rate-sensitive markets.