Download Learnerz IAS app from the Play Store now! Download



Impact of inflation on food prices UPSC NOTE


  • May’s provisional headline retail inflation may have marginally eased to a 12-month low of 4.75%, but food price gains remained unrelenting last month

  • Vegetables and pulses were key contributors in keeping food inflation as measured by the Consumer Food Price Index little changed at 8.69%, with urban consumers feeling the heat more than their rural counterparts as the pace of year-on-year change in food prices in India’s cities and towns hit a three-month high of 8.83%

  • Vegetable inflation not only continued to hover above 27% for a sixth straight month, at 27.3%, but month-on-month gains too accelerated by almost 200 basis points to a six-month high of 3.22%.

  • Tomato, onion and potato prices led the charge, with these heavyweights in the vegetables sub-group logging sequential gains of 1.5%, 0.5% and a bruising 15.1% in the case of potato. 

  • Nor is the outlook for vegetable inflation particularly reassuring with June’s retail price trends as well as the lag from escalating wholesale costs pointing to more pain ahead for consumers running their household budgets

  • Data from the Department of Consumer Affairs Price Monitoring Division show the all-India average retail price of tomato, onion and potato, as on June 14, were 21%, 14% and 8% higher, respectively, month-on-month, and a significantly steeper 35%, 58% and 44% costlier, respectively, when compared with their year-earlier prices

  • At the wholesale level, sequential inflation in tomato, onion and potato was disconcertingly faster at 28%, 18% and 9%, respectively, underlining the challenges policymakers face in containing prices through trade measures.

  • Food inflation also manifested last month with a quickening in price gains in the category’s largest constituent — cereals and products — to a five-month high of 8.69%

  • Rainfall data from the India Meteorological Department as on June 14 that show a 12% deficit since June 1 is also a cause for mild concern, an ‘above normal’ monsoon forecast notwithstanding. 

  • With food inflation particularly hitting hardest the poorer sections, policymakers can ill afford to drop their guard.



Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,184,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,188,Govt Schemes,2,GS 2,1,GS1,6,GS2,61,GS3,23,GST,1,History,10,Home,3,IAS Booklist,1,Important News,71,Indian Economy,164,Indian History,8,Indian Polity,183,International Organisation,12,International Relations,140,Invasive Plant,1,January 2024,240,July 2023,281,July 2024,159,June 2022,6,June 2023,268,June 2024,324,March 2024,238,May 2022,17,May 2024,330,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,121,Science and Technology,93,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Impact of inflation on food prices UPSC NOTE
Impact of inflation on food prices UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content