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Inflation

  • IASbaba
  • November 8, 2022
  • 0
Economics
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In News: The UN Food and Agricultural Organisation’s (FAO) Food Price Index fell.

  • This marks the seventh successive month of decline in the index.

About:

  • FPI is a weighted average of world prices of a basket of food commodities over a base period value, taken at 100 for 2014-16
  • The dip in the FPI has been despite the cereals sub-index posting an increase. Global wheat and maize prices rose on the back on uncertainties relating to exports from Ukraine.
  • Food items have a 45.86 per cent weight in the official consumer price index.
  • Global food prices coming off from their highs reduces the risks of imported inflation, which was seen particularly in edible oils.
  • These have remained elevated, mainly on account of extended southwest monsoon rains damaging the harvest-ready kharif crops in many parts of the country
  • The same excess rains have, however, helped fill dam reservoirs and recharge groundwater aquifers that should favour the rabi (winter-spring) crops now being planted.
  • Early indications — based on improved soil moisture as well as fertiliser availability — point to a substantial increase in the area being sown under wheat, mustard, chickpea, red lentils, field pea, maize, potato, onion, garlic, cumin, coriander and other crops that are harvested from March.

Source: Indian Express

 

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