India's Heat Is Now A Better Predictor Of Food Prices Than Rain: Report
NDTV
The link between extreme heat and the price of agricultural commodities in India has strengthened over the past decade, according to HSBC Holdings Plc.
Tracking rising temperatures is becoming a better way of forecasting food inflation in India than the rain patterns economists have typically relied on, according to HSBC Holdings Plc.
The link between extreme heat, exacerbated by climate change, and the price of agricultural commodities in India has strengthened over the past decade, the bank said in a report released Thursday. The correlation between temperatures and cost of perishable staples such as fruit and vegetables in the country rose to 60% this year from 20% in 2014, it said.
Inflation remains well above the Reserve Bank of India's 4% target due to volatile food costs, prompting the authority to hold its policy rate for the last year and a half.
