New Delhi: Vegetable prices in India is soon to observe a significant decline after the nation witnessed skyrocketed rates that affected every Indian household, said Reserve Bank of India (RBI) Governor Shaktikanta Das.

The Governor on Wednesday said the prices are likely to decline from September after observing the process of the rates being soften.

The twisting prices of vegetables and cereals had led retail affectation in July to surge 7.44 that was the highets in 15 months.

The RBI Governor said, “We expect to see an appreciable slowdown in vegetable inflation from September.”

However, he added that despite the possibilities of being affected by geopolitical tensions, the outlook for cereal prices looks bright. He said it appears as a sign of monetary policy transmission considering that the declining trends in the times of elevated core inflation.

” The frequent frequentness of recreating food price shocks pose a threat to anchoring of affectation prospects, which has been underway since September 2022. We’ll remain vigilant of this,” Shaktikanta Das said.

Central Banke Stayed Focus On Inflation Adjustment 

India has raised interest rates by a total of 250 basis points since May 2022 to curb rising prices. Shaktikanta Das said the central bank remained firmly focused on inflation adjustment with a medium-term target of 4% set by the Monetary Policy Committee.

He believes that price stability must be the basis for sustainable growth, adding that the conditions are favorable for further growth and accelerating the investment cycle in 2023-2024.

Regarding the rupee, the central banker reiterated that the RBI has no specific target but will continue to build up foreign exchange reserves to help manage possible cash outflows from the dollar.