India faces ongoing inflationary risks, keeping the government and the Reserve Bank of India (RBI) vigilant, according to the finance ministry's October economic report.
Despite a recent drop in global oil prices and core inflation moderation, inflation remains a concern. The report notes that declining oil prices and lower core inflation should help manage inflationary pressures.
India's headline retail inflation hit a five-month low at 4.87% in October. The report emphasizes the need for constant monitoring of external financial flows, impacting the rupee's value and the balance of payments.