New Delhi: Food inflation has been a spot of bother for central bankers around the world since it has remained stubborn for several months skittling predictions for a cooldown in headline inflation. According to a Crisil analysis, the prices of the household thali in India, both vegetarian and non-vegetarian, have eased by 8 per cent and 12 per cent, respectively, in the month of August.
The thali was chosen by Crisil as a reflector of eating habits and a price tracker for key components sourced from the market by most households to cook a daily meal
Why are thali prices down
A key component of every thali in India is the humble tomato. However, tomato prices have given a scare to the average Indian since last year when the red fruit’s prices surged over 200 per cent at its highest. To be sure, tomato prices witness a seasonal rise in the Monsoon season due to its perishable nature and the logistical hurdles posed by rains.
Tomato prices accounted for 14 per cent of a thalis’s price in August 2024, with its price decline of over 51 per cent from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024, according to the Crisil report.
Lower LPG cylinder prices
The price of LPG cylinders also weighed in on the decline in thali prices, according to Crisil. LPG prices hovered near Rs 803 per cylinder in August 2024, compared to Rs 1,103 per cylinder in the year ago period.
Why non-veg thalis cost less in August?
Non-vegetarian thali prices eased in August as broiler rates declined by 13 per cent, month-on-month. This makes up for half the cost of a non-vegetarian thali, Moneycontrol reported, citing the Crisil report.
Thali components that continue to hurt the pocket
Potato and onion rates continued to hurt the consumer’s pocket as onions were costlier by Rs 13 on a year-on-year basis while potatoes turned dearer by Rs 15 per kg during the same period. Lower rabi crop arrivals of potatoes and onions prevented thali costs from declining further in August, according to the Crisil report.
The prices of vegetarian and non-vegetarian thalis declined by 8-12 per cent on a monthly basis in August 2024, according to rating agency Crisil. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
