VEGETABLE PRICE INFLATION
Tomato prices in India skyrocket on tight supply
Tomato prices have surged to Rs 80 per kg in retail markets due to damaged road networks in Himachal Pradesh from heavy rains, reducing supplies to main consumption areas. The average retail price reached Rs 55 per kg on July 3, up from Rs 35 a month ago. The India Meteorological Department predicts more rain in tomato-growing regions, potentially causing further price hikes.
Telcos' tariff hikes to push up core inflation by 0.2 pc in FY25: Report
The recent tariff hikes by the top three telcos in the country are expected to raise core inflation by 0.20 per cent in FY25, with analysts at Deutsche Bank revising their core inflation forecast to 3.8 per cent. The impact of the hikes is anticipated to be felt from July onwards, potentially pushing month-on-month core inflation by over 0.85 per cent. The Reserve Bank of India is closely monitoring the inflation trajectory, especially considering factors like below-trend monsoon rains and fluctuating food prices.
India's weekly vegetable spending up in the past few weeks, says survey
Rising vegetable prices due to various factors like the heatwave and monsoon challenges have led to increased consumer spending. Authorities are urged to step in to address the situation and stabilize prices for households across the country.
India allows imports of corn, vegetable oils at concessional duty
India has decided to permit restricted imports of corn, milk powder, crude sunflower oil, and refined rapeseed oil with concessional duty. As the largest global importer of vegetable oils, India will allow imports totaling 150,000 metric tons each of sunflower oil or safflower oil and refined rapeseed oil in the ongoing marketing year, according to the notification.
Rain deficit may spike food inflation further, warn experts
A note from Madhavi Arora, lead economist at Emkay Global Financial Services Ltd, said cumulative rainfall till June 21 was 17% below the long-term average (LTA), while the weekly rainfall (till June 19) was 33% below the LTA. Overall, basin-wise reservoir levels were in deficit and below last year's level as well. On June 20, the overall level was about 9% below the LTA and 19% below last year's level.
RBI MPC minutes: Panelists flag incoming impact of 'exceptionally' warm summers on food inflation
The Reserve Bank of India's (RBI) Monetary Policy Committee members raised concerns about inflation pressures due to "exceptionally" warm summers, impacting perishable goods and crop output, as per their latest meeting minutes. RBI Governor Shaktikanta Das expects retail inflation to moderate to 4.5% in FY25 but warns of near-term challenges.
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Retail inflations for farm, rural workers remain almost flat in May
Retail inflation for agricultural labourers and rural workers in India remained flat at 7.7% and 7.02% in May, respectively, compared to 7.03% and 6.96% a month ago. The point-on-point inflation rate for CPI-AL was recorded at 7.0% in May 2024, while for CPI-RL, it was at 7.02%. The main items driving the indices were vegetables, pulses, wheat, onion, milk, turmeric, ginger, fish fresh, jowar, pan leaf, medicines, shirting cloth, saree, and leather chappal.
Why are milk, vegetable, and pulse prices rising? When will they come down? Here are some indicators
Food inflation in India has persisted at 8% year-on-year since November 2023. A severe heatwave has further reduced supplies of pulses, vegetables, and cereals, prompting minimal impact from export curbs and import tariff reductions. Experts suggest that a robust monsoon by early July could alleviate concerns over the delayed cultivation of kharif crops.
After electoral setback, Modi may be forced to amend India's food policy
Facing policy challenges after recent election losses, Indian Prime Minister Narendra Modi grapples with controlling food inflation without angering farmers through export curbs and increased imports. With crucial provincial elections looming, Modi must balance economic measures and farmer interests to maintain political stability and address rural discontent.
Why food prices will remain high in India
Food inflation in India, driven by supply-side factors like adverse weather affecting crops, has remained at around 8 per cent year-on-year since November 2023. The elevated prices of food has prevented interest rate cuts as headline inflation exceeds the central bank's 4 per cent target. Drought, heat waves, and delayed monsoon rains have led to significant reductions in food supplies, particularly impacting vegetables, while government interventions and upcoming elections further complicate the situation.
Exceptionally hot summer & low reservoir levels to likely impact vegetables, fruit crop: RBI
The Reserve Bank of India (RBI) warned on Wednesday that the exceptionally hot summer and low reservoir levels could stress the summer crops of vegetables and fruits, potentially disrupting efforts to control inflation. Governor Shaktikanta Das highlighted that while overall inflation eased, food prices remain volatile and elevated, complicating the inflation battle.
Rising vegetable prices strain household budgets across India: Survey
A survey by LocalCircles highlighted significant consumer concerns over rising prices of essential vegetables—onion, potato, and tomato. It found that 16% of households are cutting consumption or feeling financial strain due to these price hikes, with another 31% anticipating impact if prices exceed INR 50 per kg. Currently, 2 in 3 households are paying above-average prices: Rs 25/kg or more for tomatoes, Rs 30/kg or more for potatoes, and Rs 35/kg or more for onions.
India’s wholesale prices accelerate to 15-month high of 2.61% in May
India's Wholesale Price Index (WPI) surged to a 15-month high of 2.61 percent in May, up from 1.26 percent in April 2023. This increase was notably higher compared to the 3.48 percent decline seen in May 2023. The numbers accelerated significantly, with WPI reaching 7.4 percent in May, up from 5.5 percent in April and 4.82 percent in May 2023. Primary articles inflation rose to 7.2 percent in May from 5.01 percent in April, while fuel and power inflation remained subdued at around 1.4 percent.
Edible oil prices rise 15% in a month
Companies like Adani Wilmar, Emami Agrotech, and Sunvin Group said while disruption in soyabean oil supplies from Argentina and Brazil is driving prices higher, mustard oil prices have risen as National Agricultural Cooperative Marketing Federation of India (NAFED) and Haryana State Co-operative Supply and Marketing Federation Ltd (HAFED) have purchased large quantities of mustard seeds.
Price of veg thali up 9% in a year; how much prices of tomato, potato and onion have increased
The average cost of a home-cooked vegetarian thali jumped by 9% (year-on-year) in May, costing Rs 27.8, according to Crisil MI&A Research. The same thali cost Rs 25.5 last May. When compared to April 2024, the price was increased by 1%. It was available at Rs 27.4 a plate in April. The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India. (Representational image)
RBI MPC Meet 2024: RBI leaves inflation projection for FY25 unchanged at 4.5%
RBI MPC Meet 2024 LIVE: The Reserve Bank of India maintained its inflation forecast at 4.5% for this fiscal year amid concerns over rising food prices. The central bank found some relief as crude prices dipped below $80 per barrel. The RBI's Monetary Policy Committee kept the repo rate unchanged at 6.5% for the eighth consecutive time, citing vigilance against potential inflationary pressures. Governor Shaktikanta Das highlighted the uptick in vegetable prices and global food inflation. Despite a slight easing in overall retail inflation to 4.83%, concerns linger over food price hikes, particularly in items like garlic and ginger.
Potatoes, onions, tomatoes kept veg thali costly in May
In May, the prices of potatoes, onions, and tomatoes led to a rise in the cost of home-cooked meals for the second consecutive month, according to a Crisil report. The price of a vegetarian thali increased by 8% from the previous year to ₹27.80, with a 1% sequential increase. Factors such as lower onion and potato arrivals, along with crop damage in West Bengal, contributed to the price rise. Onion prices increased by 43%, potatoes by 41%, and tomatoes by 39%.
Services activity growth eases to 5-month low in May
India's services sector output growth moderated in May, reaching its lowest level in five months, according to the HSBC India Services Business Activity Index. The index slipped to 60.2 from 60.8 in April, indicating a softening in services activities due to factors like severe heat waves and price pressures. While domestic new orders eased slightly, they remained robust, supported by strong demand conditions and successful advertising. Export demand also provided support, with new orders rising at the fastest pace in nearly a decade.
Milk prices in India on the boil: What’s causing the hikes time and again?
Following India's completion of the monumental 18th Lok Sabha elections, a surge in prices emerged notably in milk and tolls. The nation's top two milk cooperatives, Amul and Mother Dairy, have announced a Rs 2 increase in their milk prices, effective June 3. Consequently, the full cream variants of Mother Dairy and Amul, previously priced at Rs 66 per litre in 2023, will now be priced at Rs 68 per litre.
RBI unlikely to cut interest rate on June 7, say experts
The Reserve Bank of India is unlikely to cut the benchmark interest rate in its upcoming monetary policy review amid inflation challenges and improving economic growth. Scheduled for June 5-7, the Monetary Policy Committee (MPC) is expected to maintain the current 6.5% repo rate. Experts cite steady economic conditions and ongoing inflation concerns as reasons for maintaining the status quo
Heat waves, monsoon will offer RBI some food for thought
RBI has kept its benchmark interest rate unchanged at 6.5% for more than a year, sticking to a relatively hawkish stance as inflation remains above its 4% target. With uncertainty over prices of vegetables and pulses, the RBI is unlikely to shift its stance anytime soon while expectations of a rate cut have been delayed to the end of the year.
Sweltering heatwave intensifies vegetables & pulses' price surge in India
India grapples with soaring vegetable and pulse prices exacerbated by a relentless heatwave affecting various regions. Limited supplies and surging demand have led to significant price hikes, particularly for potatoes, tomatoes, onions, ginger, and garlic. Erratic weather patterns, including heatwaves and pest infestations, disrupt supplies, while inflation remains high despite an overall slowdown in retail inflation.
Wholesale inflation rises to a 13-month high of 1.3% in April
Wholesale inflation hits a 13-month high of 1.26% in April, up from 0.53% in March, driven by food and fuel prices. Food articles see a significant rise, with double-digit inflation in rice, pulses, and vegetables. Rising crude prices contribute to fuel inflation. Experts predict continued inflation due to base effect and geopolitical tensions.
Wholesale inflation in April quickens to 13-month high of 1.26% on spikes in power, food prices
India's wholesale price index-based inflation accelerated to 1.26 per cent in April, a 13-month high, according to data from the Commerce Ministry. The increase was attributed to a major shortage in onion supply until the next kharif crop, which is expected to be a reversal from the current scenario. Potato WPI also accelerated by 71.97 per cent in April, compared to 52.96 per cent in March. The month-over-month change in WPI index for April 2024 stood at 1.26 per cent. Wholesale food inflation also increased to 5.52 per cent on an annual basis, while food inflation grew 1.94 per cent on a MoM basis.
India's retail inflation eases marginally to 11-month low of 4.83 per cent in April
In April, India's retail inflation slightly decreased to 4.83 percent annually from 4.85 percent the previous month, as per government data released on Monday. According to a Reuters poll of 44 economists, the estimated figure was 4.80 percent.
Inflation eases further to an 11-month low of 4.83% in April, despite higher food inflation
India's inflation decreased to a low of 4.83% in April, which is the lowest in 11 months, compared to 4.85% in the previous month, due to a slight increase in food inflation caused by high vegetable and pulses prices.
Tomato, onion and potato keep thali prices up in April: Crisil
In April, the cost of home-cooked meals rose by 8% compared to the previous year, largely due to higher prices of onions, tomatoes, and potatoes. This increase affected the cost of a vegetarian thali, which rose slightly to Rs 27.4. Lower arrivals of these vegetables also contributed to double-digit inflation in rice and pulses. However, non-vegetarian thali costs decreased by 4% to Rs 56.3, mainly due to a decline in broiler prices. The RBI projects inflation to ease to 4.5% in FY25, with no expected rate cut in the near future.
Rising heatwave may hit farm output, push up inflation: Experts
Economists warn of heatwave's impact on farm output and inflation, raising prices. Perishable foods, like vegetables, key contributors to inflation. Concerns about logistical challenges, kharif season, and reservoir levels amid weather extremes.
Pricey affair: Vegetables likely to pinch your pocket until monsoon
Experts anticipate a prolonged period of high vegetable prices due to strong demand, heatwaves, and an expected delay in relief until the monsoon arrives, with significant inflation impacts and price spikes observed across a variety of produce.
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