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Govt's analgesic for inflation: Steps to alleviate price rise in pipeline

If the monsoon season does not undergo a substantial revival, there could be added pressure on prices, especially if the standing kharif crop begins to deteriorate

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Representative Image (Photo: Bloomberg)

1 min read Last Updated : Aug 20 2023 | 10:24 PM IST

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Retail inflation in July surged to a 15-month high of 7.44 per cent, largely due to high vegetable and cereal prices. Inflation in food items was 11.51 per cent, marking one of the highest monthly readings in almost three years. Tomatoes, other vegetables, pulses, along with spices, have been the main culprits behind this price spiral.

The Centre has implemented multiple measures to alleviate these price increases, some of which have already started showing results (such as a recent decrease in tomato prices at the retail level over the past fortnight).

Looking ahead, senior government officials have assured that more stringent measures are in the pipeline. However, a significant variable in this equation is the monsoon. The rains are currently on an extended break, and according to certain reports, August showers could be among the most deficient ever recorded.

If the monsoon season does not undergo a substantial revival, there could be added pressure on prices, especially if the standing kharif crop begins to deteriorate.

Business Standard examines the pain points related to prices, the actions taken, and potential measures that might be attempted in the months ahead.

Topics : Inflation retail inflation