Page 4 - Food Prices

India's consumer price inflation likely eased to 4.91% in Mar: Reuters poll

Inflation was expected to return to the RBI's target next quarter but be above it in subsequent quarters, according to a separate Reuters survey on the longer-term outlook

Ahead of 2024 Lok Sabha elections, taming food prices govt's priority

Food prices have a direct bearing on poll preferences of the voter and in the past there have been instances when governments have been voted out due to rising food inflation

Vegetarian thali became costlier in March, non-veg cheaper: Report

Onion prices could lead to vegetarian thali prices increasing later, says CRISIL

Dining out? Be ready to shell out more as food commodity prices surge

With a rise in cocoa prices due to adverse weather conditions in the African regions as well as surging prices of palm oil, coffee beans, and sugar, the usual plate is all set to cost more

Stubbornly high food prices slowing drop in inflation to 4%: RBI bulletin

Food price pressures is an obstacle in swifter fall in retail inflation to the Reserve Bank's target of 4 per cent, said an article on the 'State of Economy' in the central bank's March Bulletin published on Tuesday. Retail inflation based on Consumer Price Index (CPI) is on a decline since December and was at 5.09 per cent in February. "Even as inflation is on the ebb with broad-based softening of core inflation, the repetitive incidence of short amplitude food price pressures deters a swifter fall in headline inflation towards the target of 4 per cent," said the article authored by a team lead by RBI Deputy Governor Michael Debabrata Patra. It further said the global economy is losing steam, with growth slowing in some of the most resilient economies and high frequency indicators pointing to further levelling in the period ahead. In India, real GDP growth was at a six-quarter high in the third quarter of financial year 2023-24, powered by strong momentum, robust indirect taxes, a

Costlier food keeps retail inflation elevated in Feb; Jan IIP growth eases

Madan Sabnavis, chief economist, Bank of Baroda, said inflation in February was purely a food-driven phenomenon, which would continue to pressure prices in the coming months

Wheat inventories hit 7-year low at 9.7 MT after record state sale

Wheat reserves in state stores totalled 9.7 million tons at the start of this month, down from 11.7 million tons in March 2022, the state-run Food Corporation of India said

Govt to take all measures to contain prices of essential food items: Goyal

The Centre will pull all stops to ensure prices of essential food items from onion to tomatoes to pulses do not spike particularly during the elections, Union Minister Piyush Goyal said as he cited the Modi government's track record of controlling rates within days of any temporary hike. In an interview with PTI, Goyal, who is heading the food and consumer affairs ministry, asserted that the Modi government would continue to take measures to ensure that there is no stress on the household budget of "our Nari-Shakti". Replying to a query regarding the government's strategy to ensure that there are no spikes in prices of food items when the general election kicks in, the minister said, "We are going to be on top of it. And I can assure the people of India that this government cares for the women of India." He highlighted that the government has spent in the last few years about Rs 28,000 crore to the price stabilisation fund to support the effort to fight against food inflation. "We

Recurring food price shocks pose challenges in tackling inflation: Das

Reserve Bank Governor Shaktikanta Das on Thursday said recurring food price shocks and renewed flash points on the geo-political front pose challenges in tackling inflation. "We remain vigilant to navigate through the last mile of disinflation as it is often the most difficult part of the journey. We firmly recognise that stable and low inflation will provide the necessary bedrock for sustainable economic growth," the governor said. Das stressed that stable and low inflation will provide the necessary bedrock for sustainable economic growth. India has successfully navigated through multiple challenges and emerged as the fastest-growing large economy, he said in his keynote address at the 59th SEACEN Governors' Conference here. "Prudent monetary and fiscal policies have paved the path for India's success in sailing through these rough waters. The Reserve Bank projects the Indian economy to grow by 7.0 per cent during 2024-25, marking the fourth successive year of growth at or above

UK inflation steady at 4% in Jan as lower food prices offset energy costs

Inflation in the U.K. held steady at 4% in January as lower food prices helped offset an increase in energy costs, official figures showed Wednesday. The reading was better than expected as most economists expected inflation to rise modestly to around 4.2%. The Office for National Statistics said the monthly drop in food prices of 0.4% was the first since September 2021. Still, inflation remains double the Bank of England's target rate of 2%. The Bank of England has managed to get inflation down from a four-decade high of more than 11%, by raising its main interest rate aggressively from near zero to 5.25%. It has held the rate there since August and there are hopes that cuts may soon be on the agenda. Inflation was first stoked by supply chain issues during the coronavirus pandemic and then Russia's full-scale invasion of Ukraine, which pushed up food and energy costs. While the interest rate increases have helped in the battle against inflation, the squeeze on consumer spending

Bharat-branded 'chana dal' biggest selling brand with 25% mkt share

The government-procured chana dal retailed under the 'Bharat' brand has emerged as the biggest selling brand among householders with 1/4th market share in less than four months of its launch due to the price advantage, Consumer Affairs Secretary Rohit Kumar Singh said on Wednesday. Launched in October 2023, the Bharat-branded 'chana dal' has an edge because it is priced lower at Rs 60 per kg compared to other brands at around Rs 80 per kg, he said. "The response has been so good that out of 1.8 lakh tonne monthly consumption of chana dal (all brands included) among householders in the country, 1/4th of it is 'Bharat' brand chana dal," Singh told PTI. About 2.28 lakh tonne of Bharat brand chana dal has been sold since October 2023. The monthly average sale was around 45,000 tonne, he said. Initially, the sale started through 100 retail points and now has reached 13,000, both mobile and fixed retail outlets covering 139 cities in 21 states, he added. Stating that this step has helpe

UK inflation falls by more than anticipated to 2-year low of 3.9% in Nov

Inflation in the UK as measured by the consumer prices index eased back to its lowest level in more than two years, official figures showed Wednesday, in a development that is likely to bolster speculation that the Bank of England may start cutting interest rates sooner than expected. The Office for National Statistics said inflation dropped to 3.9 per cent in the year to November, its lowest level since September 2021, from 4.6 per cent the previous month. That decline was bigger than anticipated in financial markets. The agency said the biggest driver for the fall was a decrease in fuel prices after an increase at the same time last year. Food price inflation also contributed to the decline. Last week, the Bank of England left its main interest rate at a 15-year high of 5.25 per cent, where it has stood since August following the end of nearly two years of hikes. Bank Gov. Andrew Bailey said interest rate policy would likely have to remain restrictive for an extended period of ...

Centre bans onion exports, tightens wheat stock limit to tame food prices

Maha farmers protest onion export ban; Ajit Pawar terms ethanol decision as 'sudden'

RPSG Group's Nature's Basket adds luxury food retailing to its cart

"We will take the concept beyond Mumbai and Kolkata to Delhi and Bengaluru as well," Goenka said

Inflation respite

But food prices can pose policy challenges

Retail inflation eases to four-month low of 4.87% as food prices cool

The government has tasked the RBI to ensure the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side

India vulnerable to recurring food price shocks, says RBI Governor Das

The RBI's rate-setting panel has raised the repo rate by 250 basis points cumulatively between May 2022 and February 2023 to manage inflation expectations

Prices of essential foods to remain stable during festive season: Food Secy

Prices of essential food items will remain stable during the festival season, Union Food Secretary Sanjeev Chopra on Thursday said. The decision on allowing sugar exports during the current 2023-24 marketing year (October-September) will be taken after the agriculture ministry comes out with the production estimates of sugarcane, he added. The secretary was briefing the media on the domestic supply and prices of key essential food items like wheat, rice, sugar and edible oils. "Prices are expected to remain stable during the festival season. We are not anticipating any manner of hike (in food item prices) in the festival season. Hopefully, prices should rule stable in the next couple of months," Chopra told reporters here. The government has taken some decisions recently to ensure price stabilisation, the secretary said. The government has recently used all tools at its command, whether trade policy or stock limit norms. These tools have been used judiciously to ensure prices rema

Inflation seen easing to 5.50% in Sept on softening food price rises: Poll

Inflation, as measured by the annual change in the CPI , was forecast to have fallen to 5.50% in September from 6.83% in August, according to an Oct. 3-9 Reuters poll of 66 economists

FMCG firms see subdued growth in Q2; rising food prices hamper rural demand

The FMCG industry expects a subdued low to mid-single-digit volume growth in the July-September quarter as weak macroeconomic conditions amid rising food prices and below-normal rainfall in some regions are impeding the recovery in rural demand. Companies such as Marico, Dabur and Godrej Consumer Products Ltd (GCPL) in their quarterly updates said that though there was an improvement in consumption in the second quarter, the recovery has been gradual. Moreover, the festive season this year has entirely shifted to the third quarter, due to which offtake related to festivals is delayed and will carry forward to the next quarter, the companies said. Over their gross margins, the companies said they expect it to be better sequentially, helped by moderating inflation and easing price growths. This also helped them to go for higher A&P (Advertisements and Promotions) spending. Updating its business performance for the September quarter, GCPL said: "In India, we witnessed weak macros and