A recent report by Crisil has shed light on a notable decline in food prices in January, primarily attributed to a significant decrease in the prices of onions and tomatoes. The report indicates that the prices of these essential vegetables dropped by 26% and 16% month-on-month, respectively, offering some respite to consumers grappling with inflationary pressures.
The Roti Rice Rate (RRR) report, compiled by Crisil, highlights that the cost of a vegetarian thali, comprising roti, onion, tomato, potato, rice, dal, curd, and salad, rose to Rs 28 in January 2024 from Rs 26.60 in the same period last year. However, despite this uptick, the overall trend points towards a slight easing of food prices due to the decline in onion and tomato prices.
According to Crisil, the decline in onion prices was spurred by higher domestic supply amidst export restrictions, while fresh tomato arrivals from northern and eastern states further contributed to the drop in prices.
Conversely, the report notes a 5% increase in the price of a vegetarian thali over the past year, underscoring persistent inflationary pressures in the food sector.
Interestingly, while vegetarian thali prices saw a modest increase, prices for non-vegetarian thalis experienced a notable decline. The report indicates a 13% decrease in the price of a non-vegetarian thali, primarily attributed to an 8-10% month-on-month decline in the prices of broilers.
Finance Minister Nirmala Sitharaman addressed concerns over food inflation, highlighting various measures taken by the government to mitigate price spikes. These measures include importing pulses and releasing onion stocks at subsidized rates through government-controlled cooperatives.
Despite the recent easing in food prices, Crisil's research suggests that concerns regarding inflation, particularly regarding essential food items like onions and tomatoes, remain prevalent among consumers. While searches for onion and tomato prices have declined since December, indicating some alleviation of anxiety, the overall Google Trends Index value remains elevated, signaling continued apprehension surrounding inflation.
Follow us
