Despite multiple efforts and new initiatives from the Punjab government, inflation continues to surge across the province as outdated price control measures fail to contain artificial price hikes and profiteering.
The persistent pressure of elevated food prices continues to drive inflation, suggesting that any potential reduction in interest rates will hinge on evidence of stable inflation trends nearing the RBI's target of 4 percent. As such, market participants may need to brace for a prolonged peri
India's Consumer Price Index (CPI)-based inflation rate for September reached 5.49 per cent from 3.65 per cent in August, reflecting an uptick primarily due to higher food prices
In terms of the overall WPI, the index for all commodities reached 154.6 in September 2024, registering a modest monthly increase of 0.06 per cent from the 154.5 recorded in August.
Rajani Sinha, Chief Economist at CareEdge, noted, "Despite the moderation in the inflation of the food and beverage basket when compared to last year, the sequential momentum remains strong, with a 2.5 per cent M-o-M increase in prices, higher than an average sequential grow."
The ongoing volatility in the prices of key food items such as tomatoes, onions, and potatoes (collectively known as TOP) and pulses continues to pose significant challenges for the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), highlights a report by SBI.
With La Nina getting precedence going ahead, excess rainfalls could result in crop loss and thus a negative impact on food prices, SBI Research report, authored by Soumya Kanti Ghosh, Group Chief Economic Advisor, said.
Faced with food inflation remaining at elevated levels consistently, the Reserve Bank of India on Thursday said that it is too long a period for a food price shock to be termed as transitory.
According to CRISIL report, the increase in food prices, particularly vegetables, cereals, milk, and fruits, has been a significant contributor to this uptick.