Food inflation negative for rating: Moody’s

Global rating agency Moody’s on Monday said 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.

Global rating agency Moody’s on Monday said 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.

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While Fitch and Standard and Poor’s have downgraded their outlook on India to “negative” from “stable”, Moody’s Investors Service has assigned a “stable” outlook. WPI-based inflation stood at 6.8% in February and food prices rose by 11.4% year-on-year.