September rains in agricultural regions are a good forecast for cooling inflation

September rains in key agricultural regions raised hopes of an easing of food price inflation in India. The increase in rainfall favored the main crops of rice and soy, which saw an increase in sown areas. “Compared to the previous year, the area under paddy rice increased by 2.7% and that of soy by 1.3%”. The rains are expected to continue until September 21 and if they continue, there will be no significant difference in the crop quantity compared to last year, according to experts. However, the final impact on inflation will depend on the final harvest.

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