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Tomato prices could upset inflation trajectory: RBI
Business Standard
|July 08, 2023
The surging prices of tomatoes could potentially disrupt India's inflation trajectory, a study by researchers at the Reserve Bank of India (RBI) said.
According to the report, there is unidirectional volatility transmission from tomato prices to those of onions and potatoes. This means that variations in tomato prices have an impact on the pricing of onions and potatoes.
The findings suggest that knowledge about tomato price fluctuations is passed along to the pricing of the other two vegetables, indicating a certain level of interdependence and information flow between their prices.
The study titled 'Anatomy of Price Volatility Transmission in Indian Vegetables Market' was funded by the Reserve Bank of India under the DRG Study Series.
Development Research Group (DRG) has been constituted in the RBI in its Department of Economic and Policy Research.
Wholesale tomato prices crossed ₹150 per kilogram in markets last week. A few weeks ago, tomatoes were being sold at ₹15 to 20 per kg.
Cette histoire est tirée de l'édition July 08, 2023 de Business Standard.
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