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Below the Quote on Optimistic Outlook: Normal Rains Expected in August-September Amidst Rising Inflation from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The prediction that rains will be normal in August-September is good news particularly after the June deficit has been compensated by good rains in July. Good crops from normal monsoon can certainly keep prices under check. But it is important to understand prices have been rising and remaining firm due to cost push factors coming from rising prices of inputs like fertilisers, pesticides and animal feed. Good rains cannot solve this problem. But normal rains in August and September can anchor inflationary expectations and help keep food prices in check.

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