Along with high inflation, a potential Chinese economic mishap is a rapidly rising risk for the global economic outlook. While sustained weakness in China could reduce select commodity prices, it will likely have adverse implications for the global economy, particularly countries in Asia. In India, economic growth in Q1 FY24 (Apr-Jun 2023) likely remained strong given strong impulses were observed in manufacturing, construction, and agriculture sectors. A near-term risk to the outlook remains from uncertain weather conditions which could affect agriculture sector performance in Q2 and consequently consumption in the upcoming festive season. Inflation in July jumped to a 15-month high, driven by a spike in food prices, but is expected to ease in Aug-Sep as shortages in certain food items normalise.