Friday, August 19, 2022

Food inflation in India to reach 9 per cent, says Nomura report

 “Consumers’ perception of inflation is strongly influenced by the prices of frequently purchased necessities, such as food, and can lead to higher inflation expectations,” Bloomberg quoted from the Nomura report

PRAVASISAMWAD.COM

India’s food inflation will reach a whopping 9 per cent – a result of high feedstock prices, according to a Nomura report. However, the report mentions galloping food inflation in the second half of the year in Asia with major food importers like Singapore bearing the brunt of higher prices of staples, reported Bloomberg.

“Consumers’ perception of inflation is strongly influenced by the prices of frequently purchased necessities, such as food, and can lead to higher inflation expectations,” Bloomberg quoted from the Nomura report.

India’s food inflation was marginally below the 8 per cent mark in May compared to 8.3 per cent in April. The summer heat wave also contributed to the rise in food prices, according to the finance ministry’s monthly economic report. The ministry expects food prices and retail inflation to come down on the back of the timely arrival of the southwest monsoon.

Food inflation has also seen high vegetable prices. “Retail food inflation has been higher than non-food and the difference may be partly attributed to the onset of summer heat waves as retail vegetable inflation, with a weight of 6 per cent in CPI basket, increased to 18.26 per cent in May 2022,” the finance ministry report also said.

It is not just vegetables that are costlier. Edible oil prices have been at a high adding to a higher food inflation. India imports nearly 60% of its edible oil. Supplies have been disrupted due to the Russia-Ukraine war, leading to high prices.

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Gyanendra
(Gyanendra has been teaching and writing for the last 15 years. His passion for teaching keeps him engaged. He keeps a keen interest in Sports and Current Affairs.)

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