‘High food inflation credit negative’https://indianexpress.com/article/news-archive/web/high-food-inflation-credit-negative/

‘High food inflation credit negative’

Moody’s has said that India’s high food inflation is credit negative for the country as it hurts government finances and curtails the ability of the RBI to deal with monetary issues

Moody’s has said that India’s high food inflation is credit negative for the country as it hurts government finances and curtails the ability of the RBI to deal with monetary issues.

“Sustained food inflation is credit negative because it exacerbates India’s macroeconomic challenges of slowing growth,high inflation and large fiscal and current account deficits,” Moody’s said.

Moody’s is the only one of the three major credit agencies to rate India with a “stable” outlook.