SBI Research, in its latest 'Ecowrap' report, noted that a continued vigil on the evolving inflation outlook is warranted given the erratic progress of monsoon and its impact on Kharif crop sowing, and subsequently on overall food inflation.
The rise in inflation could partly be attributed to the current spurt in tomato prices across India. The rise in tomato prices is reported across the country, and not just limited to a particular region or geography. In key cities, it rose to as high as Rs 150-160 per kg. Besides vegetables,
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As per the official statement, the Department of Consumer Affairs has instructed the National Agricultural Cooperative Marketing Federation (NAFED) and the National Consumer Cooperative Federation (NCCF) to procure tomatoes from markets in Andhra Pradesh, Karnataka, and Maharashtra, where th
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Bucking the trend, retail inflation in India rose considerably in June to 4.81 per cent, largely due to a sharp spurt in vegetable prices. The inflation index for rural and urban was 4.72 per cent and 4.96 per cent, respectively.
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Amid a sharp spurt in tomato prices across the country, the Central government has directed its agencies – NAFED AND NCCF -- to immediately procure the staple vegetable from mandis in key growing states of Andhra Pradesh, Karnataka, and Maharashtra.
Investors now await retail inflation data for June to be released later today. Analysts expect inflation may see an uptick due to the sharp rise in tomato and a relative spurt in pulses prices.