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An RBI Bulletin study examines how El Niño, La Niña and the Indian Ocean Dipole affect rainfall, growth and inflation in India. It finds El Niño alone does not necessarily cause scanty rainfall or high food inflation, and that the rainfall-inflation relationship is non-linear.
The findings suggest Indian monsoon outcomes, and therefore Indian food demand and feed grain needs, are less predictable than headline El Niño forecasts imply. Price impact is limited and mainly indirect for feed markets.
rbi.org.inReserve Bank of IndiaJul 1, 2023After 50 past neutral report events, Rough Rice moved a median -0.0% over 5 sessions (50% higher; middle half -1.9% to +1.5%), and -1.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
