Food inflation has been a concern for many countries, including advanced economies, but India has managed to steer its inflation trajectory “very well.” The consumer food price index (CFPI) in India moderated to 4.79 percent in March this year, down from 5.95 percent in February and 7.68 percent in March 2022.
This is at a time when the inflation figures in the US and European countries have been hovering way above their tolerance range as the countries try to revive their economies after the turmoil caused by COVID-19 and amid difficult global conditions in the wake of the Russia-Ukraine war.
In the US, UK, and Euro Area, food inflation is 8.5 percent, 19.1 percent, and 17.5 percent, according to data put out by the World of Statistics on its Twitter handle. Countries like Lebanon, Venezuela, Argentina, and Zimbabwe are facing food inflation of 352 percent, 158 percent, 110 percent, and 102 percent, respectively. She attached the food inflation data tweeted by ‘World of Statistics,” which lists figures from various countries. India is among the six countries in the bottom half of the list whose food inflation is less than five percent.
The government has taken steps to keep food inflation under check. To manage the overall food security of the country as well as meet the needs of neighbouring and other vulnerable countries amid the Ukraine war, India last year amended the export policy of wheat by putting its exports under the “prohibited” category, which is still in force.
Global wheat prices have shown substantial volatility in the past year, as both Ukraine and Russia are major suppliers of wheat. Heat waves in several wheat-growing regions in India before the rabi harvest last year affected crops. Wheat pods in the mature stage typically shrink if overexposed to heat.
For energy security, India has imported discounted crude oil offered by Russia. The RBI has also engaged in necessary policy actions to counter inflationary pressures and support growth.