Vegetable prices in India have begun to fall and are projected to decline from September, Reuters quoted the Reserve Bank of India (RBI) Governor Shaktikanta Das as saying on Wednesday.

The skyrocketing prices of vegetables and grains have caused retail inflation to soar to 7.44 per cent in July, its highest level in 15 months.

“We expect to see an appreciable slowdown in vegetable inflation from September,” Das said.

Although the possibility that global tensions could negatively influence food prices, he said the forecast for grain prices is positive.

The gradual decrease in core inflation over the past few months, according to Das, is a sign of monetary policy transmission despite core inflation being elevated.

According to him, the central bank would be vigilant to prevent persistent inflation from spreading to other market segments.

“The frequent incidences of recurring food price shocks pose a risk to anchoring of inflation expectations, which has been underway since September 2022. We will remain watchful of this,” Das said.

Since May 2022, India has increased interest rates by a total of 250 basis points to control inflation. According to Das, the Monetary Policy Committee’s legislated medium-term aim of 4 per cent inflation is still the central bank’s primary goal.

He asserted that the foundation of sustained growth must be price stability and added that the circumstances are ideal for the growth to continue and the capex cycle to pick up steam in 2023–2024.

The RBI chief reaffirmed that there is no set aim for the rupee but that the RBI will keep increasing its foreign exchange reserves to help control any dollar outflows.

"The Reserve Bank has also made conscious efforts to improve systemic resilience and efficiency by maintaining external stability and building forex reserves," he said.

(With inputs from Reuters)

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Vegetable prices in India have begun to fall and are projected to decline from September, Reuters quoted the Reserve Bank of India (RBI) Governor Shaktikanta Das as saying on Wednesday.

Vegetable prices in India have begun to fall and are projected to decline from September, Reuters quoted the Reserve Bank of India (RBI) Governor Shaktikanta Das as saying on Wednesday. The skyrocketing prices of vegetables and grains have caused retail inflation to soar to 7.44 per cent in July, its highest level in 15 months. “We expect to see an appreciable slowdown in vegetable inflation from September,” Das said. Although the possibility that global tensions could negatively influence food prices, he said the forecast for grain prices is positive. The gradual decrease in core inflation over the past few months, according to Das, is a sign of monetary policy transmission despite core inflation being elevated. According to him, the central bank would be vigilant to prevent persistent inflation from spreading to other market segments. “The frequent incidences of recurring food price shocks pose a risk to anchoring of inflation expectations, which has been underway since September 2022. We will remain watchful of this,” Das said. Since May 2022, India has increased interest rates by a total of 250 basis points to control inflation. According to Das, the Monetary Policy Committee’s legislated medium-term aim of 4 per cent inflation is still the central bank’s primary goal. He asserted that the foundation of sustained growth must be price stability and added that the circumstances are ideal for the growth to continue and the capex cycle to pick up steam in 2023–2024. The RBI chief reaffirmed that there is no set aim for the rupee but that the RBI will keep increasing its foreign exchange reserves to help control any dollar outflows. "The Reserve Bank has also made conscious efforts to improve systemic resilience and efficiency by maintaining external stability and building forex reserves," he said. (With inputs from Reuters) WATCH WION LIVE HERE

Vegetable prices in India to fall from September: RBI governor

Vegetable prices are skyrocketing in parts of India so much so that petrol is cheaper than tomatoes in some places. In certain cities, a kilogram of tomatoes costs 150 Indian rupees. The main reasons for this hike in fact are heat waves and heavy rainfall disrupting Supply chains. And it is not just Tomatoes prices of vegetables like ginger cauliflower and even chillies have shot up.

Petrol is cheaper than tomatoes in some Indian cities

India's inflation surged to a 17-month high of 6.95 per cent in March for the third consecutive month.

The country had recorded the previous highest inflation rate at &nbsp;7.61 per cent in October 2020. Food inflation shot up to 7.68 per cent and retail inflation was at 5.52 per cent.

Inflationary pressure was witnessed in oil&nbsp;and fat&nbsp;amid the Ukraine war with Ukraine being a major exporter of sunflower oil.

<a href="https://www.wionews.com/business-economy/indias-wpi-inflation-rose-in-august-over-costlier-manufactured-goods-412956">Also Read:&nbsp;India's WPI inflation rose over costlier manufactured goods</a>

Vegetable prices surged last month with inflation at 11.64 per cent as meat and fish prices rose 9.63 pre cent compared to February.

Reports claim&nbsp;lemon&nbsp;prices have also skyrocketed. In India's capital&nbsp;the price of lemon is reportedly between&nbsp;Rs 300 to Rs 350 per kg with the wholesale price in Gujarat at around Rs 300 per kg.&nbsp;

Prices of lemon have also surged in Hyderabad as reports suggest soaring heat in lemon producing areas in Gujarat, Maharashtra and Andhra Pradesh has damaged the summer crop. &nbsp;

India has also been witnessing a surge in fuel prices which has reportedly pushed up the transportation cost of vegetables.

(With inputs from Agencies)

India's inflation surged to a 17-month high of 6.95 per cent in March for the third consecutive month. The country had recorded the previous highest inflation rate at 7.

India's inflation surged to a 17-month high of 6.95 per cent in March for the third consecutive month. The country had recorded the previous highest inflation rate at 7.61 per cent in October 2020. Food inflation shot up to 7.68 per cent and retail inflation was at 5.52 per cent. Inflationary pressure was witnessed in oil and fat amid the Ukraine war with Ukraine being a major exporter of sunflower oil. Also Read: India's WPI inflation rose over costlier manufactured goods Vegetable prices surged last month with inflation at 11.64 per cent as meat and fish prices rose 9.63 pre cent compared to February. Reports claim lemon prices have also skyrocketed. In India's capital the price of lemon is reportedly between Rs 300 to Rs 350 per kg with the wholesale price in Gujarat at around Rs 300 per kg. Prices of lemon have also surged in Hyderabad as reports suggest soaring heat in lemon producing areas in Gujarat, Maharashtra and Andhra Pradesh has damaged the summer crop. India has also been witnessing a surge in fuel prices which has reportedly pushed up the transportation cost of vegetables. (With inputs from Agencies)

India's inflation surges in March; lemon prices skyrocket

The Chinese government has told families to keep daily necessities in stock in case of emergencies, after COVID-19 outbreaks and unusually heavy rains that caused a surge in vegetable prices raised concerns about supply shortages.

China urges families to keep stocks of daily necessities ahead of winter

China is targeting vegetable hoarders as prices of some vegetable have been doubled in recent weeks, costing more than meat in some cases. Heavy rainfall in major growing regions this year has damaged crops in the country.

China targets vegetable hoarders as prices soar

India&#39;s headline inflation probably stayed near a two-year high in June even as industrial production in May likely contracted, increasing the odds that the central bank will keep interest rates on hold next month. 
 
Consumer prices in June are estimated to have risen 5.73 per cent on an annual basis, according to a Reuters poll, a tad lower than May&#39;s 5.76 per cent - the fastest pace since August 2014.&nbsp;That would be a worry for outgoing Reserve Bank of India (RBI) Governor Raghuram Rajan, who wants inflation kept below at 5 per cent by March 2017. 
 
The Aug. 9 policy meeting will be the last for Rajan, whose three-year term ends in early September. Between January 2015 and this April, he cut the repo rate by 150 basis points, to 6.50 per cent.&nbsp;After holding rates in June, the governor said the central bank was looking for room to reduce them further, but it remained concerned about pressure on food and commodity prices. 
 
Demand-driven pressures are likely to be stoked by the hike of salaries and pensions for about 10 million government employees and pensioners. Vegetable prices, meanwhile, have surged due to seasonal supply disruptions. 
 
While a pick-up in summer monsoon rains in recent weeks is expected to cool food inflation, most analysts don&#39;t expect another rate cut before a new governor is on the job. DBS in Singapore expects a rate cut in the October-December quarter. 
 
New Governor, New Mechanism 
 
Prime Minister Narendra Modi is widely expected to name a new governor before July 18. Government sources say the race is mainly between former RBI deputy governors Rakesh Mohan and Subir Gokarn. 
 
The government has to also constitute a Monetary Policy Committee (MPC) to set interest rates by a majority vote, a departure from the current regime where the decision effectively rests with the RBI chief.&nbsp;It aims to name the six-member committee before the August policy review. Three members of the MPC would be RBI insiders, headed by the governor who would have the casting vote in the event of a 3-3 split. 
 
Three external members would be chosen by a panel comprising Modi&#39;s cabinet secretary, the RBI governor, a top finance ministry bureaucrat and three outside experts named by the government.&nbsp;India&#39;s statistics office will release retail inflation data and industrial production data at 1200 GMT today. 
 
Analysts surveyed by Reuters expect output at factories, mines and utilities to shrink 0.4 per cent in May from a year earlier compared with a surprise 0.8 per cent annual contraction a month ago. 
 
(Reuters)

According to a Reuters poll, consumer prices in June rose 5.73 per cent on an annual basis, a tad lower than May's 5.76

India's headline inflation probably stayed near a two-year high in June even as industrial production in May likely contracted, increasing the odds that the central bank will keep interest rates on hold next month. Consumer prices in June are estimated to have risen 5.73 per cent on an annual basis, according to a Reuters poll, a tad lower than May's 5.76 per cent - the fastest pace since August 2014. That would be a worry for outgoing Reserve Bank of India (RBI) Governor Raghuram Rajan, who wants inflation kept below at 5 per cent by March 2017. The Aug. 9 policy meeting will be the last for Rajan, whose three-year term ends in early September. Between January 2015 and this April, he cut the repo rate by 150 basis points, to 6.50 per cent. After holding rates in June, the governor said the central bank was looking for room to reduce them further, but it remained concerned about pressure on food and commodity prices. Demand-driven pressures are likely to be stoked by the hike of salaries and pensions for about 10 million government employees and pensioners. Vegetable prices, meanwhile, have surged due to seasonal supply disruptions. While a pick-up in summer monsoon rains in recent weeks is expected to cool food inflation, most analysts don't expect another rate cut before a new governor is on the job. DBS in Singapore expects a rate cut in the October-December quarter. New Governor, New Mechanism Prime Minister Narendra Modi is widely expected to name a new governor before July 18. Government sources say the race is mainly between former RBI deputy governors Rakesh Mohan and Subir Gokarn. The government has to also constitute a Monetary Policy Committee (MPC) to set interest rates by a majority vote, a departure from the current regime where the decision effectively rests with the RBI chief. It aims to name the six-member committee before the August policy review. Three members of the MPC would be RBI insiders, headed by the governor who would have the casting vote in the event of a 3-3 split. Three external members would be chosen by a panel comprising Modi's cabinet secretary, the RBI governor, a top finance ministry bureaucrat and three outside experts named by the government. India's statistics office will release retail inflation data and industrial production data at 1200 GMT today. Analysts surveyed by Reuters expect output at factories, mines and utilities to shrink 0.4 per cent in May from a year earlier compared with a surprise 0.8 per cent annual contraction a month ago. (Reuters)

India's retail inflation expected to remain high in June

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