Page 8 - Food Inflation

B20 Summit India: My priority is to tame inflation, says FM Sitharaman

Finance Minister Nirmala Sitharaman on Friday said the government's priority is to tame inflation to ensure sustained economic growth. Addressing the B20 Summit India, being hosted by the Confederation of Indian Industry (CII), the minister said the GDP numbers for the first quarter, to be released this month, should be good. Observing that elevated interest rates for considerable time hampers recovery, Sitharaman said, "my priority is to tame inflation." Retail inflation soared to a 15-month high of 7.44 per cent in July, mainly on account of spiralling prices of tomatoes and vegetables. On growth, she said that India has been able to accelerate the pace of economic reforms and the first quarter GDP numbers "should be good." The National Statistical Office is scheduled to release the GDP numbers for the first quarter on August 31. Sitharaman said that "green shoots' of private capital expenditure can be felt on back of the government's push for capital expenditure in the budget.

Vegetable price inflation to decline from Sept, says RBI Governor Das

He said despite core inflation in the country remaining elevated, the steady easing seen in the last few months indicates that monetary policy transmission is happening

India's retail inflation surges on food prices in challenge to Modi govt

Food inflation, which accounts for nearly half of the overall consumer price basket, hit a staggering 11.51% in July as compared with a revised 4.55% in June

Analysts see bond yields hitting 7.5% in near-term; how should you invest?

Over the past one month, the yields on 10-year government bonds have risen 14.7 basis points to 7.218 per cent in India, while they have touched a 17-year high of 4.35 per cent in the US

Global uncertainty, domestic disruption to keep inflation elevated: FinMin

The finance ministry on Tuesday said the inflation in food items is likely to be transitory as preemptive measures by the government and arrival of fresh crops will cool prices, even though global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months. In its Monthly Economic Review for July, the ministry said going forward, while domestic consumption and investment demand are expected to continue driving growth, enhanced provision for capital expenditure by the government in the current fiscal is now leading to crowding in of private investment. The consumer price index based retail inflation spiked to a 15-month high of 7.44 per cent in July 2023, with specific food commodities mainly driving the increase. Core inflation, however, stayed at a 39-month low of 4.9 per cent. Cereals, pulses and vegetables exhibited double-digit growth in July compared to the corresponding period last year. Disruption in domestic production also aggravated

Tomato prices cooling with fresh arrival; retail prices at Rs 50-70/ kg now

The government on Monday said tomato prices have fallen to Rs 50-70 per kilogramme with arrival of fresh crops in retail markets and it will continue to sell tomatoes at a discounted rate till rates come down to a normal level. Tomato prices had skyrocketed to as high as Rs 250 per kg in the retail markets across the country due to unseasonal rains. "Tomato prices are ruling in the range of Rs 50-70 per kg in retail markets across the country at present," Consumer Affairs Secretary Rohit Kumar Singh told PTI. Prices have started cooling down with increase in arrival of the fresh crop in states like Madhya Pradesh, he added. On sale of tomatoes at a subsidised rates, the secretary said the government will sell the commodity at the discounted prices in select states till the retail prices come to normalcy. Cooperatives NCCF and NAFED have started selling tomatoes at a reduced rate of Rs 40 per kilogramme since August 20 amid declining price of the kitchen staple in wholesale and ret

Modi govt seeks to free up $12 billion to tackle inflation before LS vote

It would be the second straight year of similar adjustments to contain costs for consumers after the government unveiled a $26-billion plan last year

India's retail inflation rises to a 15-month high of 7.44% in July

Food inflation hits double digits

High fruit prices may likely increase food inflation further in 2023

The late arrival of monsoon and heavy monsoon rains have impacted crops, which led to higher prices

A veg thali now costs 28% more. What is to blame?

The price of a vegetarian thali in India rose by 28 per cent in July as compared to June, CRISIL's monthly indicator of food place cost released on Monday showed. Watch the video for the details >

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Food prices can increase policy risks

Rising food prices may push July inflation up by 190 bps to 6.7%: Report

Citing the sharp rise in food prices, economists at a foreign bank have forecast a steeply higher retail inflation print for July, pegging it at 6.7 per cent, up 190 basis points from the previous month. Deutsche Bank India economists led by chief economist Kaushik Das, in a report on Monday ahead of the monthly inflation print and the Reserve Bank's monetary policy review, said that the July consumer price-based inflation index (CPI) is likely to print at 6.7 per cent on-year as against 4.8 per cent in June. The Reserve Bank is widely believed to leave the key interest rates unchanged for the fourth time in its upcoming bi-monthly monetary policy decision on August 10. The last repo rate hike was in December 2022, when the central bank raised the rate by a quarter percentage point, taking it to a near decadal high of 6.50 per cent. The massive spike seen is due to food prices, led by tomatoes and onions and also rice shooting over the roof in July with daily prices of 22 essential

Food industry impacted by high commodity prices: Britannia Industries

FMCG major Britannia Industries Limited said that the food sector in which it operates has been significantly impacted by high commodity prices, rising interest rates and due to the fall out of the Russia-Ukraine conflict. The long term effects of these factors continue to be felt extensively, the company said in its annual report for 2022-23. It said that although commodity prices were volatile and inflation was at unprecedented levels, the post-COVID normalisation of economic activities supported growth throughout 2022-23. During the last fiscal, the major challenge confronting the food industry was managing inflation in the cost of key inputs like wheat, milk, sugar, palm oil and crude oil, the company annual report said. The foods vertical of Britannia comprise segments like biscuits, cakes, rusks, bread and dairy. On the outlook for the foods vertical, the company said that businesses in the country are still optimistic on demand conditions despite apprehensions about global

Cut-off yield on 364-day Treasury bill up 7 bps as traders resist to invest

The Reserve Bank of India has fixed the cut off yield on the 91-day, 182-day, and 364-day T-bill at 6.72 per cent, 6.87 per cent, and 6.93 per cent, respectively

Tomato prices may touch Rs 300/kg in coming days: Wholesale traders

Tomato prices are likely to touch Rs 300 per kilogram in the coming days and the prices of vegetables are also on the rise, according to wholesale traders. Kaushik, a member of Agricultural Produce Marketing Committee (APMC), said that vegetable wholesalers are facing losses as the sale of tomato, capsicum, and other seasonal vegetables has fallen drastically. He said that the prices of tomatoes have shot up to Rs 220 per kilo from Rs 160 per kilo in the wholesale market, owing to which retail prices can also go up. Meanwhile, Mother Dairy started selling the key kitchen staple at a whopping Rs 259 per kg on Wednesday via its Safal retail stores. Tomato prices have been under pressure for more than a month now on account of supply disruptions caused due to heavy rainfall in the key producing regions. "There is a lot of difficulty in transportation of vegetables due to landslides and heavy rain in Himachal Pradesh. It takes 6 to 8 hours more than usual in exportation of vegetables

Tomato prices spike on tight supply, Mother Dairy selling at Rs 259/kg

Tomato prices have again hit the roof in the national capital with Mother Dairy selling the key kitchen staple at a whopping Rs 259 per kg on Wednesday via its Safal retail stores. Tomato prices have been under pressure for more than a month now on account of supply disruptions caused due to heavy rainfall in the key producing regions. With central government's intervention through sale of tomatoes at a subsidised rate since July 14, retail prices in the national capital had begun softening recently but have again firmed up due to short supply. As per the data maintained by the consumer affairs ministry, retail price of tomato touched Rs 203 per kg on Wednesday, whereas at Mother Dairy's Safal retail outlets, the price was ruling at Rs 259 per kg. Tomato supply has been affected across the country for last two months owing to weather abnormalities. In the last two days, arrivals in Azadpur, which is the main feeder for Delhi, has also dropped drastically. Due to short supply, price

India may continue supply interventions to curb food inflation: Nomura

Earlier this month, the government stepped in to procure tomatoes from certain centres to redistribute them in regions of high consumption to bring down prices

UK's high food inflation not driven by weak competition: Regulator

UK food price inflation reached its highest since 1977 in March at more than 19%, according to official data

Britain's food industry thinks worst inflation is over as costs stabilise

Britain's overall rate of inflation has remained stubbornly high this year. Economists expect it to dip to 8.2% on Wednesday

Food inflation still high worldwide; Venezuela, Lebanon worst hit

In real terms, food price inflation exceeded overall inflation in 79.8% from 163 countries where data are available, the World Bank said in its latest food security update