How India’s increased temperature will lead to rising inflation?

The Weather Office said in a statement that February hit the highest-ever temperature it is expected that India will probably experience heat waves between March and May. Moreover, India received 68% lower rainfall than usual in the month of February. Undoubtedly, the sudden rise in temperature will bring inflation as it could affect crops such as Chickpeas, Mustard, Wheat, and rapeseed. Indian Express reported that Rabi crops still need low temperatures for maturity. India Meteorological Department (IMD) said that heat waves will impact regions of central and adjoining north-west India.

How rise in temperature will lead to an increase in inflation?

Heat waves could increase power consumption during summer.

If heat waves affect Rabi crops then it will also impact Kharif crops such as rice and millet because of less rainfall this year.

Impact on transportation of fresh produce.

Lack of enough cold chain infrastructure.

It will be a challenge for governments to keep inflation under control. Read more