Food inflation rose marginally to 8.7% in April
Retail food inflation surged to 8.7% year-on-year in April 2024, up from 8.52% in March, driven by soaring prices of vegetables, pulses, and cereals. Vegetables spiked by 27.8%, while pulses saw a slight decline to 16.84%, with arhar pulses leading at 31.42% rise. Cereal inflation hit 8.63%, primarily due to rice prices. Inflation in meat and fish reached 8.17%, with chicken prices soaring by 13.89%. However, mustard oil and refined oil prices plummeted by 12.23% and 14.38% respectively. Milk prices rose by 2.97%, while spices inflation eased to 7.75%, attributed to a decrease in jeera prices.
Retail food inflation rose to 8.7% year-on-year in April, 2024 from 8.52% y-o-y in March as prices of vegetables, pulses and cereal prices went up.
The consumer food price index (CFPI) recorded a sequential rise of 0.73% on month. In April 2023, food inflation in April, had gone up by 3.84% y-o-y.
Aditi Nayar, chief economist, ICRA said inflation in the vegetables and pulses categories remained in double-digits for the sixth and eleventh consecutive months which contributed to the elevated levels of food inflation.
Inflation in vegetables was 27.8% y-o-y in April. This compares with a rise in prices of a lower 28.34%y-o-y in March. The rise in retail prices of potatoes last month was 53% y-o-y against an increase of 41% y-o-y in March, 2024 due to prospects of a drop in output. Potato prices were in the negative zone during February, 2023 to January, 2024.
Retail inflation in onions rose to 36.58% last month, marginally lower than 36.88% in March, 2024 on year. Tomato prices rose by 41.78% last month against 32.52% rise in March, 2024 on year.
Inflation in pulses declined to 16.84% in April from 17.71% in March, 2024 while the arhar variety of pulses reported the highest price rise of 31.42%.
The price rise in lentils or masur variety of pulses was in the negative zone in April due to higher imports.
Overall cereal inflation in April rose to 8.63% from 8.37% on year in March, 2024 driven by the rise in rice prices.
Inflation in wheat rose to 6.02% last month while price rise was 4.74% in March, 2024.
Retail rice prices rose by 12.51% last month, marginally lower from March, 2024. The government has banned exports of white rice and imposed 20% export duties on par-boiled rice to improve domestic supplies.
“Cereal and pulses will continue to witness high prices until the next crop comes in and any changes in the downward direction will be more due to base effects rather than prices coming down,” Madan Sabnavis, chief economist, Bank of Baroda, said.
Inflation in the meat and fish category rose by 8.17% last month from 6.36% in March, 2024 on year. Chicken prices rose by 13.89% last month because of higher feed prices, while prices rose by 8.53% in March, 2024 on year.
Mustard oil and refined oil prices dropped sharply by 12.23% and 14.38% respectively last month on year while overall inflation in oils and fats category declined by 9.43%.
Milk and products prices rose by 2.97% last month on year, an increase from 3.38% in March, 2024 on year. Manish Bandlish, managing director, Mother Dairy Fruit & Vegetables recently told FE that ‘there will be no wild swing in milk prices’ as inflation has moderated recently. The last hike in milk prices (by Mother Dairy) was announced in February 2023.
Inflation in spices eased to single digits of 7.75% in april after a gap of 22 months due to the softening of inflation in jeera(cummin) to 29.4% from a high of 122% in November, 2023
Source Link : https://www.financialexpress.com/policy/economy-food-inflation-rose-marginally-to-8-7-in-april-3486500/
Recommended for you
