The retail food inflation hit a 3-month high on Monday. The Consumer Price Index (CPI) shows a rise of 6.52 % in various food items prices. It is the highest in terms of the inflation rate recorded back in October, which was 4.19%. The rise in retail inflation indicates that the cost of various food items will surge in the upcoming days. After the government presented the Union Budget 2023, the news of retail food inflation can worry the middle-class section of the society.
According to the data released by the Ministry of Agriculture the price of wheat is expected to rise by 25.5% in January. It also stated that the weight output for the crop year of 2021-2022 dropped by 3 %due to heat waves back in march last year. On the other hand, there will also be a price surge in rice, which will be around 10.42% in the coming weeks. In March 2022, the Indian government banned the export of various crops to ensure domestic supplies and emphasised the additional export duty of 20 %.
Since the inflation rate affects almost every type of food and may disrupt people’s budgets, the price of food items largely affects retailers. The prices of eggs, milk, and oil may hit the highest in the upcoming months. However, there will be some relief for people as the expected vegetable price remains moderate.
Nikhil Gupta, Chief Economist at MOFSL, said, “India’s headline inflation surged to a five-month high last month versus the market consensus of 7.3 percent and MOFSL’s expectation of 7.5 percent.”
However, there is no statement from government officials on retail food inflation. Undoubtedly, food item prices continue to rise and affect the demands of daily households. It is also interesting to see the efforts of the government to bring some relief by keeping food items in moderation.
