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.
Analysts from the RBI said that the spike in tomato prices represents a serious concern for India s inflation battle and highlights the need for monetary policy action and supply-side management improvements. From empirical estimates to history, find out five interesting facts about tomato prices in India.
Skyrocketing food prices in India are hitting consumers hard. Prices for staples such as rice, pulses and tomatoes, essential items used in the preparation of most Indian dishes, have surged and making affording even necessities difficult for most Indians, who in any case paying over Rs 100 for a litre of petrol in many parts of the country.
The largest weighted category in the country’s index, food prices, experienced a surge of 10.1% from the previous month. Clothing, restaurants, hotels, and home goods exceeded the headline rate. The only exception was alcoholic beverages, which saw monthly price rises of less than 5%.
Citigroup Chief Financial Officer (CFO) Mark Mason, on March 8, said that rising inflation and slowing economic activity had led to some households experiencing difficulties.