Edible oil import slides to 1.18 MT

Plunges To 43-Months Low

- SANDIP DAS

INDIA'S RETAIL FOOD inflation eased to 0.99% in May, marking a seven-month low, driven by lower prices for increases vegetables, cereals, pulses, meat, and spices. However, inflation in edible oils and fruits remained elevated.

The Consumer Food Price Index (CFPI) fell by 0.051% on a sequential basis in May compared to April. In contrast, food inflation was as high as 8.7% in May 2024.

Vegetable inflation saw a sharp year-on-year decline of 12.74% in May, following a 10.98% drop in April. In contrast, edible oil and fruit inflation remained high at 17.91% and 12.7%, respectively.

"Higher production of pulses in both kharif and rabi crops helped temper prices. In the case of vegetables, there was the base effect as well as higher supplies," said Madan Sabnavi, chief economist, Bank of Baroda.

Sabnavi noted that the early onset of rains in June has affected tomato and onion crops, pushing up their prices. "There would hence be moderation in inflation next month," he added.