The cost of vegetarian thali was Rs 27.4 in April, rising only slightly from Rs 27.3 in the previous month.
“The cost of the veg thali increased due to a surge of 41%, 40% and 38% on-year in prices of onion, tomato and potato, respectively, on a low base of last fiscal. Lower onion arrivals due to a significant drop in rabi acreage and damage to potato crop in West Bengal led to the price increase,” Crisil noted.
Crisil pointed out that lower arrivals also ensured that rice and pulses inflation was double digits in April.
Pulses inflation has remained in double digits for the last five months.
Vegetable inflation at 28% was a reason for sticky food inflation at over 8% in March, even as consumer inflation declined below 5% for first time in five months.Experts indicate that heatwave conditions will likely keep vegetable prices higher for this quarter, keeping food inflation higher. The non-veg thali costs were 4% lower at Rs 56.3 in April.
“The decrease in the cost of the non-veg thali was due to ~12% on-year decline in broiler prices on a high base of last fiscal,” Crisil noted.
Sequentially, Crisil pointed out higher demand and rising input prices as a cause for non veg thali prices 3% higher than March.
The Reserve Bank of India projects inflation to ease to 4.5% in FY25.
The central bank is likely to hold rates at its meeting next month, with experts indicating a rate cut only in the second half of the year.
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