Many fail to meet food item needs

Retail inflation soared to a 17-month high of 6.95% in March, while wholesale price-based inflation spiked to a 30-year high of 14.55% in the same month.

Published: 20th April 2022 08:00 AM  |   Last Updated: 20th April 2022 08:00 AM   |  A+A-

Image used for representational purpose only. (File Photo)

Image used for representational purpose only. (File Photo)

Express News Service

NEW DELHI:  As inflation in India continues to hit new highs, consumers are struggling to meet daily needs of food items. In just a year, cooking oil prices have shot up by over `30 a liter and in two years the same has nearly doubled. Similarly, other food items such as vegetables, dairy products, fish & meat, among other items, have also seen substantial price hikes.

“Since past few months, a large section of consumers are purchasing fewer items and a noticeable section is discarding items such as cheese and butter. This is a negative sign for the country as well as the retail/FMCG industry,” a senior executive of a prominent grocery chain told TNIE. 

Retail inflation soared to a 17-month high of 6.95% in March, while wholesale price-based inflation spiked to a 30-year high of 14.55% in the same month.  As per the Consumer Price Index (CPI), inflation in ‘oils and fats’ segment was up 18.79% in March’22, spices 8.5%, vegetables 11.64% , and meat and fish 9.63%.

While this sharp jump in inflation is attributed to the disruption in the global supply chain caused by the Russia-Ukraine war, prices of many food items in India have been going up much before this conflict due to different reasons. In the last one year, every FMCG player implemented more than one price hike across their product range to pass on the rising input cost. This decision seems to have deteriorated consumer sentiments further as their monthly budget was already dilapidated by a record rise in petrol, diesel, and cooking gas prices.

Debopam Chaudhuri, head, Research and Ratings, TruBoard Partners said that heavy inflationary pressures across major consumables like the entire food basket, clothing, and energy needs of an average consumer will force her to reallocate spending away from discretionary to necessities. “It is critical to bring food inflation below 6%,” added Chaudhuri. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp