Balanced
Pranjul Bhandari: Temperature trends tell us more about future food inflation than rainfall levels do
India’s food inflation is increasingly driven by rising average temperatures, now a better predictor than rainfall or reservoir levels. Global warming and intensifying El Niño events amplify this, causing lower crop yields across perishable and durable categories, and even animal products. This shift forecasts rising inflation and softening economic growth. Policymakers face challenges: potential fiscal slippage to support growth, and the Reserve Bank of India might gently raise rates, torn between elevated inflation and softer growth, as the heat profoundly impacts the entire economy.
LiveMint · Pranjul Bhandari · Jun 18, 2026 at 8:30 AM