According to reports, the prices of India’s food dropped on the August 6, whereby easing the constant price pressures and disrupting the expectations of the continuous tightening of the Monetary Policy.

Also, the wholesale price index for food articles dropped by 1.7% to 191.9 from 195.3 in the past week, and the year-on-year inflation rate went down to 9.03% from 9.90% in the same previous week.

Bond prices increased, with the 7.80% 2021 bond, reaching an intraday high of 96.88 rupees compared to 96.72 rupees before the data, and Finance Minister Pranab Mukherjee said: “Food inflation is still at unacceptable levels, but normal rainfall this year will help ease inflationary pressures”.

Hence, food prices in India is still constantly high, as increasing prosperity is said to lead to increased demand for high in protein foods like eggs, milk and meat, and an ineffective distribution system has led to ‘periodic supply shocks’ as well as an intermittent rise in the prices of food.

Moreover, RBI Deputy Governor Anand Sinha stated: “Tackling inflation is a prime concern for the central bank, which will be looking for a sustained downtrend in prices”.