The cost of home-cooked meals in April, compared with the previous year, was 8% higher due to increased prices of onions, tomatoes, and potatoes, as revealed by Crisil data released Wednesday.
In April, the price of a vegetarian thali was INR 27.4, showing a marginal increase from INR 27.3 in the preceding month.
Crisil observed that the rise in the cost of the vegetarian thali was influenced by significant increases in onion, tomato, and potato prices, with respective year-on-year surges of 41%, 40%, and 38%, attributed to a low base from the previous fiscal year. Reduced onion arrivals, stemming from a notable decline in rabi acreage, and damage to the potato crop in West Bengal were cited as primary factors driving the price escalation.
Crisil highlighted that decreased arrivals also contributed to double-digit inflation in rice and pulses during April.
Continue Exploring: Vegetarian thali prices surge 7% in March on onion, tomato, potato costs; non-veg thalis drop 7%: Crisil Report
Inflation in pulses has sustained double-digit figures for the past five months.
With vegetable inflation at 28%, food inflation remained stubbornly high at over 8% in March, despite consumer inflation dropping below 5% for the first time in five months.
Experts suggest that heatwave conditions are expected to maintain elevated vegetable prices throughout this quarter, thereby keeping food inflation at higher levels.
In April, the price of non-vegetarian thalis decreased by 4%, reaching INR 56.3.
“The dip in the price of the non-veg thali was due to 12% on-year decline in broiler prices on a high base of last fiscal,” Crisil said.
Sequentially, Crisil highlighted increased demand and rising input costs as factors leading to a 3% rise in non-vegetarian thali prices compared to March.
Continue Exploring: Erratic weather drives 10% increase in potato prices: Supply shortage felt nationwide
The Reserve Bank of India anticipates inflation to decrease to 4.5% in the fiscal year 2024-25.
The central bank is expected to maintain interest rates at its upcoming meeting next month, with experts suggesting the possibility of a rate cut only in the second half of the year.
