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Raising concerns over the street, credit rating agency S&P Global Ratings’ Economist (Asia Pacific) Vishrut Rana has stated that Inflation in India is likely to remain elevated in the near terms but government policies will prevent it from rising further.

Rana noted in India the monsoon has been very patchy and overall rain was about 11 per cent below normal and this is a significant concern as it can affect grain prices in India over next few months. He further said that supplies remain very strong and the government is likely to step in to prevent significant increase in commodity, wheat and rice prices. It will help to keep food price inflation little bit low.

As per Rana, overall the inflation environment for India will depend on energy prices. Food prices will remain elevated but is unlikely to go up because of public policies. He expects overall inflation to remain elevated but not rising further for India over the next few months.