Food Inflation

Rising prices of onions, cooking oil, ginger and other staples are squeezing Indian households as weak monsoon rains, ethanol demand and global conflicts threaten food supplies

A Business Standard poll of 11 economists projects August retail inflation at 4.5-5 per cent, driven by higher food prices and a firmer core inflation reading

The cost of home-cooked meals rose moderately in August, a report said on Tuesday. The cost of a vegetarian meal increased 1 per cent year-on-year and month-on-month to Rs 29.5 per thali, the monthly report by the research arm of domestic rating agency Crisil said. In the case of a non-vegetarian meal, a 10 per cent jump in broiler prices pushed up the cost of a thali by 5 per cent year-on-year to Rs 57.5, the report by Crisil Intelligence said. However, the price was 1 per cent lower from Rs 58.3 in July. Compared with last year, elevated prices of onion, vegetable oil, rice and Liquefied Petroleum Gas (LPG) kept the thali cost high despite a decline in potato and tomato prices, it said in the 'Roti Rice Rate' report. Onion prices jumped 43 per cent in August 2026 to Rs 40 per kg, compared with the year-ago period's Rs 28 per kg, due to supply tightness caused by unseasonal rains and hailstorms in Maharashtra in March-April, it said, adding that there was an 11 per cent jump in .

The Centre is using dedicated railway rakes to move buffer onions from Nashik to major cities as retail prices surge and seasonal shortages loom

Rural food inflation stood at 5.79 per cent, while urban food inflation was 5.05 per cent; this was higher than 5.45 per cent and 5.09 per cent, respectively, in June

Uneven rainfall across the ​country this year has hampered agricultural output, driving food costs higher

FAO's chief economist warns wars, El Niño and rising energy costs could trigger a fresh wave of global food inflation by year-end and into 2027

The Fitch Solutions unit says higher food prices could push up inflation and curb GDP growth as El Niño and West Asia tensions threaten agricultural output and input costs

A prolonged heatwave, delayed monsoon, expensive poultry feed have squeezed production across farms, pushing egg and chicken prices higher, raising concerns over how long the supply crunch could last

Keeping in mind the factors on crop prospects, it stands to reason that rate cuts are out, and an unchanged position can be expected.

June inflation rose above the RBI's 4% target, with food, oil prices and monsoon risks clouding the outlook, making a status quo on rates the likely policy choice

Food inflation in June increased to 5.32 per cent in June from 4.78 per cent in May, indicating renewed pressure on household food expenses

Rain can send vegetable prices soaring within days, while the impact on pulses and cereals may take months to emerge. Milk, edible oils and sugar follow very different inflation paths

Food accounts for nearly 40% of India's CPI basket. That makes the monsoon one of the earliest signals of whether inflation stays under control or becomes a policy concern

Headline inflation remains under control, but food prices are showing fresh signs of pressure. Here's what the latest inflation and crop data reveal

Retail inflation accelerated to 3.93 per cent in May, nearing the RBI's target, as higher food and transport costs offset the favourable base effect

Food inflation rose to 4.78 per cent in May, pushing up overall price pressures; rural inflation accelerated to 4.25 per cent, remaining above urban inflation at 3.53 per cent

RBI Governor Sanjay Malhotra said underlying inflation pressures remained benign, although second-round effects warranted vigilance

Nestle India chairman and MD Manish Tiwary says urban demand remained resilient while rural recovery depended on monsoon outcomes, farm income and government support

The report said companies have already increased prices by around 3 per cent to 7 per cent over the past one to two months after their raw material basket costs climbed nearly 10 per cent on average