Inflation rates can explode in many states of the country after the untimely rainfall which took place in the month of October. As per the Ecowrap report of SBI Research, in all, the rainfall was 54% more than the usual in the month of October, which has adversely affected the crops, and this can lead to price rise in the near future. In the meanwhile, petrol prices are expected to come down by 40 paise per litre. SBI has also stated that the Reserve Bank meeting scheduled to take place on 3rd November will also be primarily focusing on inflation.
The RBI also has to send its report to the Centre by 12th November, through which it will explain as to why was it unsuccessful in bringing inflation rates down for 3 consecutive trimesters, the reasons behind the failure, and what steps are being taken to deal with the same.
On the other hand, the menace of inflation is becoming a global problem. In 19 European countries which use Euro as their currency, inflation reached the record level of 10.7% in the month of October, which was 9.9% in the month of September. The reason behind which is the skyrocketing prices of natural gas and electricity.
In the meantime, Russia has dissolved the deal it had made with Ukraine, under which Ukraine was allowed to transport grains via the Black Sea. As a result of which, the rate of wheat in Chicago reached 8.93 USD per bushel (around 25 KGs), which is a 7.7% hike, the highest after the war started. The company which provided policy cover to the Ukrainian ships carrying grains has pulled out as well, and all this can lead to the further increase in the price of wheat around the world.