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LATEST NEWS UPDATES | Prices of Food Items Rising Unchecked… -Subodh Varma

Prices of Food Items Rising Unchecked… -Subodh Varma

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published Published on Aug 7, 2022   modified Modified on Aug 8, 2022

-Newsclick.in

…while the government continues to remain clueless.

By the end of June, wheat and flour prices were on fire with an incredible 10% inflation rate, according to the latest data available with the ministry of statistics and programme implementation (MoSPI). That means prices were 10% higher than in June last year. Just six months ago, in January, the inflation rate for wheat was 5.1%—uncomfortable but not yet lethal. This devastating rise in prices of a staple cereal can be attributed to the earlier policy fiasco of pushing export leading to a fall in procurement, and the subsequent U-turn.  

But the relentless rise in prices of essential food items is not limited to wheat alone. As shown in the chart below, vegetable prices have zoomed up from an inflation rate of about 5% at the beginning of the year to 17.4% in June. Some of this is a seasonal price rise in the summer but it is still way beyond that annual feature this year. 

The reason for this rise in vegetable prices is primarily the high cost of transportation arising due to the high fuel prices—again a direct consequence of the government policy of squeezing maximum taxes out of petroleum products. The heat wave also contributed to this unusual hike in vegetable prices.

But the price rise is not confined to these usual suspects. As shown in subsequent charts derived from the same MoSPI price index data, prices of several other items or food groups have been high for some months.

Cooking oils were on fire for a large part of last year primarily because of high palm oil prices in the global market. While there has been some easing of inflation in this key food item as shown in the chart below, note that inflation has simply eased from an unconscionable near-19% to about 9.4% over the past six months! An annual inflation rate of nearly 10% after months of double-digit inflation can hardly be called relief. Families continue to suffer huge damage to budgets because of this since cooking oil is an essential of Indian cuisine. And, it becomes even more hurtful when it is accompanied by the high prices of other essentials.

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Newsclic.in, 7 August, 2022, https://www.newsclick.in/prices-food-items-rising-unchecked%E2%80%A6?fbclid=IwAR2Gc9uY5gkg1dgECgtwj8hk5JtRbOfDp3j_DoQnLjdGqiq28cdiF08Qx2w


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