Britannia reported higher inflation in palm oil, laminates, and fuel costs, whereas wheat followed a deflationary trend. However, the company noted that domestic operations remained unaffected by fuel and gas shortage concerns from the West Asia conflict.
Food inflation stood at (-) 3.91%, with the corresponding rural and urban inflation rates at (-) 4.05% and (-) 3.60%, respectively.
The food inflation in February has come down to the lowest level since May 2023 and is 222 basis points lower in comparison to January, according to the official statement.
The review said India’s retail inflation jumped in October to 6.21%, a 14-month high, driven by elevated food inflation in a “few vegetables”.
The Reserve bank of India (RBI), in an article in August Bulletin, said the monetary policy needs to take a cautious approach if food inflation persists, as such shocks may not be transitory and could spill over into generalised inflation.
India’s retail inflation measured by consumer price index (CPI), saw a huge rise to 7.44 per cent in July owing…
The CFPI in India moderated to 4.79 per cent in March this year, down from 5.95 per cent in February and 7.68 per cent in March 2022.
There may not be a repeat of 2019 as regards food inflation this year as the conditions prevalent then and now are different, states a report from IDFC Mutual Fund.
The unseasonal rains in different parts of India, particularly in cereal-producing states, could have a "significantly large impact" on cereal and vegetable prices, said SBI Research in its latest 'Ecowrap' report.
India's retail inflation rose to 7 per cent in August from 6.71 per cent in July and this was due to higher food prices. In fact, retail inflation has been beyond the Reserve Bank of India's (RBI) tolerance limit of 6 per cent for eight months in a row.
