The four-month high in wholesale food inflation will remain a matter of concern in May and June, as a heatwave is expected to drive up the cost of perishable goods.
The influence of the monsoon will dictate the price circumstances in the months that follow, even though the effects of last year’s high base will manifest themselves in July and August.
In April 2024, retail food inflation was 8.70 percent, up from 3.84 percent in the same month the previous year. The trend of food inflation is significantly influenced by weather. There were heatwaves in some areas of the nation this year, and the monsoon was not very favourable the year before.
Prices for perishable goods are rising as summer approaches. We anticipate that food inflation will continue to rise throughout the following two months as the base effect becomes increasingly favourable.
In July and August of 2023, food inflation was 15.09 percent and 11.43 percent, respectively, exceedingly high. WPI inflation reached a 13-month high of 1.26 percent in April due to higher food prices. Despite the fact that the costs of food and vegetables were generally high, retail inflation data released on Monday revealed that the consumer price index (CPI)-based inflation was at an 11-month low of 4.83 per cent in April.
In July and August of 2023, food inflation was 15.09 percent and 11.43 percent, respectively, exceedingly high.
WPI inflation reached a 13-month high of 1.26 percent in April due to higher food prices. Despite the fact that the costs of food and vegetables were generally high, retail inflation data released on Monday revealed that the consumer price index (CPI)-based inflation was at an 11- month low of 4.83 per cent in April.