Monsoon Deficit Fuels Inflation Fears

• Experts from the Indian Meteorological Department suspect less rainfall
• The effect of this raise in fuel, fertilizer, raise in food imports as well
• The impact of bad monsoon season and if the rainfall is deficient by 10% there will be a raise of 2.8% prices hike for food products
• If the rain fall is very less or depending upon what it was last year there is potentially a 50-90 basis points downside to our GDP(Gross Domestic Product) estimate of 5.6 per cent for 2014-15
• Read at: http://www.thehindu.com/todays-paper/monsoon-deficit-fuels-inflation-fears/article6106169.ece

Exams Perspective:

1. Monsoon
2. Inflation
3. GDP (Gross Domestic Product)