Opinion: RBI Caught Between Tomatoes and Cookies
NDTV
Food prices in India are sending confusing signals - cookies are becoming more affordable, but meals are turning more expensive. While the former may be a more permanent indicator of commodity inflation, could the central bank really afford to ignore the latter as transient?
The cost of a home-cooked vegetarian lunch or dinner in the world's most-populous nation jumped by 28% in just one month, largely because of tomatoes. In New Delhi's Azadpur, one of Asia's biggest perishables markets, prices have shot up 17-fold since the end of May.
Most other commodities, though, are taking a breather after last year's surge. The scorching inflation that followed Russia's February 2022 invasion of Ukraine has eased. Wheat in the wholesale market is 8% softer than at the start of this year, while palm oil has crashed 30% from a year earlier. Laminates and corrugated boxes have become a lot cheaper, too. That's bringing in more competition into packaged food, with smaller players turning aggressive on pricing.
