Global recession fears may ease inflationary pressures: Govt report

CAD will deteriorate if crude prices don't come down

With global prices set to soften due to fears of a recession, the pressures caused by inflation in the Indian economy may weaken as well, the finance ministry’s economic division said in its monthly economic report for June.

The report said that most local indicators were proving to be resilient in the face of the global macroeconomic upheaval, and that the healthy goods and services tax (GST) collections and the new windfall tax would reduce the pressure on the budget deficit this year.

“If recession concerns do not lead to a sustained and meaningful reduction in the prices of food and energy