Inflation in food and beverages in July declined to 6.71% from 7.56% reported in June thanks to improved domestic supplies and moderation in global prices of edible oil. It was 7.84% in May.
However a clutch of items like tomato, potato, wheat, edible oil and mango saw sharp price increases in July.
Inflation in potato and tomato rose by 33.86% and 44.22%, respectively, in July 2022; onion price inflation was down 20.56% on year.
Due to improvement in supplies because of robust production prospects following adequate monsoon rainfall in key growing states of Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka, tomato prices have declined in recent weeks.
Tomato inflation was a huge 158.78% in June.
Lemon price rose by 18.05% in July 2022.
The country’s potato output in the 2021-22 crop year (July-June) has declined to 53.6 million tonne (mt) from a record output of in 2020-21 of 56.1 mt. Similarly, tomato output has declined to 20.30 million tonne in 2021-22 from a record 21.18 mt in the previous year.
Negative onion inflation in July 2022 was due to a bumper output of 31.12 mt in the 2021-22 crop year, against 26.64 mt in 2020-21. Carbohydrates have been recording higher inflation than certain protein items since the past few months.
Inflation in cereals was 6.9% in July up from 5.66% in June, compared with 0.18% for pulses and (-) 3.48% for eggs. Wheat prices rose by 11.66% in July 2022.
Chicken prices rose moderately by 2.28% in July 2022 against 19.42% in June 2022, while the overall food inflation in the meat and fish category was 3%.
Mango prices rose by 35.38% in July.
The edible oil and fat category saw inflation at 7.5% in July 2022 while it was 9.36% in June 2022, mostly contributed by sharp spikes in domestic prices of edible oil in the last one year.
For mustard oil, inflation was 5% in July 2022. Inflation in refined oil (sunflower, soybean and palm) was 11.41% because of a rise in global prices of edible oil, pushing up domestic prices. However, global prices of edible oils such palm and soybean oil have declined by more than 30% in the last one month and retails prices are expected to soften further.
India imports 56% of its edible oil requirements.
Earlier this month, edible oil manufacturers, including Adani Wilmar, Emami Agrotech and Ruchi Soya, had “in principle agreed to cut prices further” in a meeting with the food ministry
In the last six weeks, the landed prices of palm oil, which has a share of more than 60% in India’s import basket, has declined by more than 14% from the levels prevailing a month back. Similarly, the landed cost of crude soybean and sunflower oils declined by 4% and 14% respectively
Since May, the global price of palm oil has been declining after Indonesia, the biggest exporter of the item, removed a ban on shipment.