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Monsoon threat to inflation overplayed

Inflation is likely to have stayed subdued in May. There are rising concerns that a weaker-than-normal monsoon could push inflation up in the months ahead. But we remain sanguine: many factors in addition to rainfall and harvests help determine food price trends, and most of the others – including global prices and the government’s ample food stockpiles – should help keep food inflation in check. 

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