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Cereal inflation likely to offset Disinflationary forces, say experts -Sanjeeb Mukherjee

-Business Standard There is a possibility of a 10-15-million tonne drop in kharif rice production due to drought in several major growing states in eastern India Wheat prices in some markets have touched Rs 2,522 a quintal and cereal inflation is expected to remain sticky in the months ahead due to low wheat stocks in central granaries. Nomura India in a report said lower rice output will put pressure on domestic rice...

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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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Will food inflation be a pain for next government? All depends on cloud cover -Aparna Iyer

-Livemint.com Food inflation stood at 1.38% in April after nearly 30 months of Disinflation If it rains are below expectations, the steady rise in food prices would flare up, which would be a headache for the new government Mumbai: Indians had the good fortune of experiencing benign food prices for the last two years. This streak is now about to end as food inflation is back. It was 1.38% in April after nearly 30...

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Worst price slump in 18 years shows scale of farm crisis -Roshan Kishore

-Hindustan Times The agrarian crisis is one of the factors that may have resulted in the BJP’s loss in three Hindi heartland states of Chhattisgarh, Rajasthan and Madhya Pradesh in December, according to analysts, and the party clearly doesn’t want it to affect its prospects in the 2019 parliamentary elections. New Delhi: This financial year, 2018-19 could end up being the worst year for farm incomes in almost two decades, government data...

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Core inflation flourishes in Rural India amid growing agrarian crisis -Aparna Iyer

-Livemint.com Inflation for services and a few discretionary items has been higher in rural areas compared to urban centres When income is stagnant, a logical outcome could be curtailing expenditure. But rural India seems to be fine with paying higher prices for services that range from education to matinee shows. The chart above shows inflation for services and a few discretionary items has been higher in rural areas compared to urban centres. It...

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