RBI Governor Shaktikanta Das on Wednesday said the frequent food price spikes pose a risk to anchoring of inflation expectations.

“The frequent incidence of recurring food price shocks pose a risk to anchoring of inflation expectations, which has been underway since September 2022,” Das said.

“The role of continued and timely supply side interventions assumes criticality in limiting the severity and duration of such shocks,” he added.

Das said vegetable price shocks are short term in nature and the monetary policy can wait for the dissipation of the first-round effects of the current spate of shocks.

“We expect to see an appreciable slowdown in vegetable inflation from September,” he said, adding that the progress of monsoon in July has upped the prospects for the summer crop.

Furthermore, he said that the RBI will remain firmly focused on aligning inflation to the target of 4% and the interest rates are likely to stay elevated in the country for long.