The Ministry of Consumer Affairs displayed in Parliament, of the retail cost of 22 food items that it tracks on an everyday basis from centres over the nation, through its well-laid-out network of data collectors.
The picture appeared that between January and early December this year, the retail cost of not one of the 22 food items declined. In reality, each and each one of them rose, with packed Vanaspati and soybean oil getting to be more costly by a simple 2% and onion costs rose as Kharif crop fell short by 30% to 40% this year. Hussein Elasrag, Senior Economist, General Manager said, “One effect of higher food prices in a given country is higher consumer price index (CPI) inflation. However, higher food prices affect people in different economies differently. The impact of rapidly rising food prices on CPI inflation is substantially larger in emerging market economies than advanced economies This effect tends to be much greater for countries that are – large net importers of food, and where households spend a greater percentage of their income on food. In short, higher food prices don’t hurt everyone equally. Poorer, developing economies feel it much worse.”
Product-wise, prices of vegetables, eggs, meat, and fish pushed the retail inflation higher on a YoY basis. In contrast, the decline in prices of ‘fuel and light’ capped the overall food inflation. Accordingly, the prices of vegetables increased by 35.99%, meat, and fish by 9.38%, eggs by 6.20% and pulses and its products by 13.94%