Rising food prices, including a doubling in the price of tomatoes in India and a shortage of sugar, have increased the nation s headline inflation. Food items make up almost 40% of the Consumer Price Inflation Index and shortages of sunflower and soybean oil, drought in Europe, an international shortage of coffee beans and uneven rainfall across India s agricultural belts have all contributed to price rises.
By Shaloo Shrivastava (Reuters) - India s retail inflation slipped marginally in January but was within the Reserve Bank of India s target range for a second month as vegetable prices declined further, a Reuters poll predicted. The Feb. 5-9 poll of 50 economists showed retail inflation fell to 4.45% in January from December s 4.59%. If this holds true, inflation would be its lowest since October 2019 and within the RBI s target zone of 2%-6%. It stayed stubbornly high last year amid the coronavirus pandemic and breached the range for eight continuous months from April. Inflation was expected to ease in January led by correction in vegetable prices, said Sakshi Gupta, senior economist at HDFC Bank.
By Shaloo Shrivastava BENGALURU (Reuters) - India s retail inflation likely fell sharply in December, landing within the Reserve Bank of India s target range, due to a significant drop in vegetable and food prices, a Reuters poll predicted. The Jan. 5-7 poll of around 45 economists suggested retail inflation fell to 5.28% in December from 6.93% in November. Food inflation - particularly vegetable prices - are beginning to correct since supply lines are being restored in food aided by good monsoons, said Prithviraj Srinivas, chief economist at Axis Capital in Mumbai. Inflation had been above the central bank s target range of 2%-6% for the eight months since April, a streak not seen since August 2014.