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Key factors affecting Food Inflation in India

  • Integrity Education, Delhi
  • 28, Jun 2021
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Context: UN FAO world food price index (FPI) touched 127.1 points in May, its highest value since September 2011 but the increase in global food prices is not getting reflected in India.

  • International prices of edible oil and pulses: Price Up, Inflation Up
  • Fuel cost being pass-through to consumers: Price Up, Inflation Up
  • Monsoon : Monsoon Up, Crop Production Up, Inflation down
  • Minimum Support price for various crops by Government: MSP Up, Inflation Up