Page 4 - Food Inflation

Raghuram Rajan opposes excluding food inflation in setting interest rates

Amid suggestions for excluding food inflation while setting benchmark interest rates, former RBI Governor Raghuram Rajan has said that he is against excluding food prices from headline inflation, as it would erode the 'great faith' of people in the central bank, which has been mandated by the government to keep inflation in check. Rajan further said it is best that inflation target a basket which is what the consumer consumes because that affects the consumers perception of inflation and ultimately inflationary expectations. "When I came into office, we were still targeting PPI (producer price index). Now that has no bearing to what the average consumer faces. "So, when the RBI says inflation is low, look at PPI, but if the consumer is facing something very different, then they do not really believe that inflation is down," he told PTI. Rajan was responding to a question on suggestions made in the Economic Survey 2023-24 for excluding food inflation while setting benchmark interest

RBI may shift to neutral stance as monsoon eases food inflation concerns

Monsoon progress brightens food inflation outlook

Veg thali cost drops 8% in August, driven by low tomato prices: Crisil

Non-veg thali costs also reduced by 12% due to lower tomato prices, a kitchen staple in India, as well as reduced vegetable oil, spices, and fuel costs

Room for rate adjustments if food inflation decreases: Viral Acharya

Acharya explains why food inflation should not be excluded from the inflation targeting framework

Consumption, high food inflation concern for tea industry: FAITTA chief

Sluggish growth in domestic consumption, rising food inflation and slow recovery of exports post the Covid pandemic are some of the challenges faced by the tea industry, a senior official said. Tea producer associations and the Tea Board India have been concerned over the muted demand growth in the country, he said. The remarks came from Sanjay Shah, chairman of the Federation of All India Tea Traders Association (FAITTA), during its 10th annual general meeting here on Saturday evening. As retailers within the FAITTA fold, we are witnessing the market movements from close quarters. It is a fact that loose tea consumption has been giving way to packet tea, Shah said. Rising levels of food inflation also remain a concern area, as it adversely impacts consumption, he said. Given that incomes do not adjust as fast as prices, high inflation in essentials tend to adversely impact demand for non-essentials. Even within essentials, consumers may shift to lower priced non-premium products,

MPC and Inflation: Tracking non-food retail inflation trends in India

If monetary policy cannot influence food inflation, why should it not subject its stance to non-food price spiral?

MPC internal and external members differ on growth, inflation outlook

Deputy governor Michael Patra also warned about the spillover effects of food inflation

Food inflation likely to drop in coming months on good harvest: Govt report

The steady progress in the southwest monsoon has supported summer sown crops, finance ministry said in its monthly economic report

Cautious monetary policy needed if food inflation persists: RBI paper

Untenable to treat food price fluctuations 'transitory' in monetary policy settings: Report

Kharif sowing over in Rajasthan, all eyes on sky as rain may queer pitch

70% of guar comes from Rajasthan, rain may hit the crop

Food inflation can't be ignored, need to remain vigilant: RBI Governor Das

Economic Survey had suggested exploring whether inflation targeting framework of the central bank should exclude food

RBI MPC maintains FY25 inflation forecast, food prices remain a challenge

With food inflation contributing over 75 per cent to headline inflation in May and June and making up 46 per cent of the CPI basket, vegetable prices accounted for 35 per cent of June's inflation

Explained: RBI focus on food inflation, what MPC policy means for markets?

Why stock market, Sensex, Nifty fell after RBI policy: RBI governor Shaktikanta Das emphasised on food inflation and said food prices have remained elevated for too long

Inflation targeting without food is no solution

While the interests of famers need to be protected, it would further complicate monetary and macroeconomic management

Retail inflation for industrial workers eases to 3.67% in June: Govt

Retail inflation for industrial workers slipped to 3.67 per cent in June from 3.86 per cent in the previous month this year mainly due to lower prices of certain food items. "Year-on-year inflation for the month of June 2024 moderated to 3.67 per cent as compared to 5.57 per cent in June 2023," a Labour Ministry statement said. The All-India Consumer Price Index for Industrial Workers CPI-IW for June 2024 was at 141.4 points against 139.9 points in May 2024. Food and Beverages Group under the CPI-IW was at 148.7 points in June 2024 against 145.2 points in May this year. The Labour Bureau, an attached office of the Ministry of Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.

World food prices ease slightly in July, says UN; meat, sugar costs up

Prior to July, FAO food price index had risen for four consecutive months after hitting a 3-year low in February as prices receded from a record peak set in March 2022 after Russia invaded Ukraine

Reserve Bank of India must retain focus on food inflation, say economists

The prescription for inflation-minus-food found mention in the government's pre-budget Economic Survey published last week

Excluding food from RBI's inflation framework may not have many takers

Headline numbers best communicated to common man; Govt needs to step up supply management

Govt prepares for Rs 10,000 crore war chest to fight food inflation

Within the whole inflation basket, food inflation has been stubbornly high

Exclude food prices from inflation-targeting framework, suggests Eco Survey

Hardships caused to poor and low-income consumers can be handled through DBT, it says