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The RBI’s ‘weighty’ food problem -Abhiman Das

-The Hindu Business Line The food articles’ high weight and their price volatility have reduced the efficacy of the central bank’s policy actions The flexible inflation targeting framework adopted by RBI in 2016 is considered a significant economic reform in India post 2000. Under this framework, maintaining a 4 per cent CPI headline inflation gets the highest priority in the hierarchy of monetary policy objectives. This rule based policy making renders monetary...

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The peculiar rise of protein inflation -Sayantan Bera

-Livemint.com * The supply chain disruption in poultry continues, further hurting the nutritional standards of poorer households * The current steep prices of items that make up the retail food basket—be it eggs, pulses or vegetables—is evidently taking a toll on millions of Indian households NEW DELHI: Banks should not advance large loans to farmers, least of all to those in the poultry business, an exasperated Ramesh Mehla said over the phone. He...

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Covid puzzles: Jobs back, labour shrinks, demand low but inflation still high -Aanchal Magazine and Anil Sasi

-The Indian Express While much of the world is seeing benign inflation trends, India is a clear exception. Among the drivers of headline inflation in India in recent months has been food prices, especially those of vegetables. With economic activity picking pace after the easing of lockdown measures, the recovery has thrown up some paradoxes: revival in employment amid a fall in labour force participation, surging inflation rate despite disinflationary impact from...

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Can a stunted population drive development?

-The New Indian Express As for our media, it’s more interested in a Bihar-born actor, his girlfriend and her brother. So India is in the ‘serious’ category on the Global Hunger Index. No surprises there. There’s dismal relief only in the fact that 94th out of 107 countries is a notch better than previous years—a slow, dispiriting crawl, and below our entire neighbourhood. Bangladesh, Myanmar and Pakistan, though also in GHI 2020’s...

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Do You Know How Much Veggies are Costing, Mr. Modi? -Subodh Varma

-Newsclick.in Devastated by the pandemic and lockdown, people are now facing a back-breaking inflation, especially in everyday food items like vegetables. In just the past month, inflation (annual price rise) has zoomed up, delivering a body blow to family budgets. Recently released government data shows that retail inflation rate hit an eight-month high of 7.34%, up from 6.69% in August. This is general inflation, including all items of consumption. For food items, the...

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