New Delhi, Aug. 4 -- While temporary supply-side pressures may keep food inflation elevated in the near term, the broader economic impact of the delayed monsoon is unlikely, as per a report by Bajaj Asset Management Limited.

The report noted that rainfall improved significantly in the last week of June and remained strong through July. Additionally, reservoir levels are comfortable, with most river basins at or above their long-term averages. India's food grain stocks are also around five times the prescribed buffer level, providing a cushion to contain cereal inflation.

Apart from this, India's rural demand remains resilient, with tractor sales rising 19 per cent year-on-year in May, agricultural credit growth accelerating to nearly 15...