NEW DELHI: Retail food inflation eased for the second consecutive month at 8.34% in December compared to 10.87% in October as prices of vegetables declined over the last few weeks with winter harvest arriving in the market.
The consumer food price index (CFPI) declined by 1.47% in December compared to November. In December last year, the food inflation rate was 9.53%.
Inflation in potato and tomato prices rose by 68.23% and 31.33% respectively in December, 2024 on year. Onion prices rose by 10.99% last month.
The inflation in the vegetable category was 26.56% last month, compared to a decline of 29.33% in November. However experts said that with the arrival of winter harvests, vegetable prices have moderated in the last few weeks which is expected to bring down food inflation in coming months.
However, edible oil inflation remained high at 14.6% last month.
“Food inflation is moving down gradually with the winter crop soothing prices.The inflation rate for spices turned negative while that of pulses was benign at 3.8%,” Madan Sabnavis, Chief Economist, Bank of Baroda, said.
Sabnavis stated that high base effect did moderate inflation for pulses which price rise for inflation has been above 5% in food bucket for cereals, meat, eggs, oils, fruits and vegetables.
Inflation of 14.6% in cooking oils price in December due to hike in import duties in September as imports becomes costlier as the country imports 58% of its annual edible oil consumption. Inflation in refined oil and mustard was 19.4% and 18.67% respectively.
Inflation in pulses moderated to 3.83% in December from a high of 113% in August, as prices have softened due to prospects of robust kharif harvest and imports.
Retail inflation in pulses have been in double digits since June, 2023 because of lower output of key varieties of pulses like chana, tur and urad. The gram split variety of pulses reported the highest price rise of 18.76%. The price rise in arhar was just 1.46% last month because of a high base effect.
Overall cereal inflation in December was 6.51% and had been in single digits for the past several months because of softening of rice prices due to bumper harvest. Inflation in wheat last month was 7.84% on year.
The government is aiming to offload around 2.5 million tonne (MT) of wheat in the open market from the surplus stock of the Food Corporation of India till March which is aimed at curbing future price rise. The wheat has been sown 31.97 million hectare, up 2.14% on year this rabi season.
Inflation in the meat and fish category was just 5.3% last month. Chicken prices rose by 6.42% last month. Price rise in milk last month was only 2.74% on year.
Inflation in spices continues to decline since September last year as it declined by 7.4% last month on year. Jeera prices declined by 34.64% on year.
Source: The Financial Express
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