Wholesale food prices have skyrocketed month-on-month in May, with official data showing that the Whole Price Index for food rising from 5.52 per cent in April to 7.40 per cent in May.
The data indicates differentiated inflation rates for rural and urban areas, with rural inflation at 5.28 per cent and urban inflation at 4.15 per cent.
India's retail inflation eased to 4.83 per cent in April, down from 4.85 per cent in March. However, consumer food price inflation surged to 8.70 per cent from 8.52 per cent last month, according to data from the Ministry of Statistics & Programme Implementation.
"Further easing of food prices is on the anvil as IMD has predicted above-normal rainfall during the monsoon season, which is likely to lead to higher production, assuming good spatial and temporal distribution of the rainfall," says March 2024, monthly economic review of the finance mini
Pressure in food prices has been interrupting the ongoing disinflation process in India, and posing challenges for the final descent of inflation trajectory to the 4 per cent target, as per minutes of RBI's monetary policy meeting that was held earlier this month.
According to the provisional figures provided by the NSO, the retail inflation, based on the Consumer Price Index (General), stood at 5.09 per cent in February 2024.
Retail inflation in India declined to 5.10 per cent in January due to an easing in food prices, according to the data released by the government on Monday
The cramped living conditions, soaring food prices, and poor sanitation are further intensified by severe restrictions on the entry of essential supplies into the coastal strip.
Uncertainties in food prices along with unfavourable base effects are likely to lead to a pick-up in retail inflation in November and December, the monetary policy committee of the Reserve Bank of India observed in their latest review meeting.