Topic: Food inflation

RBI Monetary Policy Committee member Ram Singh says Budget 2025 provides opportunity for govt to show it is doing its part to address growth-inflation dynamics.

India’s retail inflation surged to a 14-month high in October, driven by high vegetable prices. A high summer harvest is expected to lower food inflation.

This round table consultation, a first of its kind, brought together representatives from various state departments, research organizations, and stakeholders to formulate a comprehensive strategy and roadmap for increasing food availability and managing prices in the region.

Fast-moving consumer goods companies, most of which derive big share of earnings from rural markets, struggling to meet sales targets. Consumers buying cheaper products, smaller packs.

State Bank of India's report stated that food inflation has caused headline Consumer Price Index (CPI) inflation to be above the targeted level.

The Economic Survey had argued that govt policies should target food inflation, while RBI’s demand-focused policies should target non-food inflation.

The central bank kept the key repo rate unchanged for an eighth straight policy meeting earlier this month saying robust economic growth will give it space to focus on bringing down inflation towards its medium-term target.

The OMSS has been successfully used to reduce the excessive stocks of wheat and rice. However, the government has not been able to find buyers for rice.

RBI has retained its inflation projection at 5.4% for the current year. Uncertainties in food prices and volatility in global crude oil prices continue to keep 4% target out of reach.

Indian Council of Applied Economic Research study says bans on export of wheat & rice were ‘knee-jerk’ reactions. Govt should adjust its trade policy, not sell at prices lower than MSP.