Ripples Advisory, Lower food prices have a flip side, reforms a must: SBI

Ripples Advisory Pvt. Ltd. is a demanding research house with best stock trading strategies- Feel Free Subscribe now >> https://www.placementindia.com/job-recruiters/company-ripples-advisory or Call 09644405056

The forecast of the normal monsoon this year is good news for food inflation, but low prices have their own "dangers" in the form of rural distress without agricultural reforms, says a report as per the PTI.

According to SBI's research report Ecowrap, most inflation risks are now on the downside and any "rush towards the 4 per cent inflation target will put further pressure on keeping a vigil on food prices".

According to an analysis, food prices are now lower than the average of the last three years. "The interesting part is even if we compare the October 2016 food prices with the 3-year average, the prices have barely moved," stated the report authored by Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI.

"This is all the more relevant, given the agitations for farm loan waivers in different parts of the country as signs of rural distress, a flip side of the crash in food inflation over the last several months."