Heatwave to keep food inflation high in coming months, say economists

[andhra_jp]

Pulses inflation may remain in double digits for a longer period; base effect to curb food inflation from Q2FY25

Heatwave is likely to exert pressure on food prices in the coming months, with pulses inflation remaining in double digits, according to economists.

“Food inflation would be above 8 percent in June 2024, then there is a very strong base effect in 2QFY25, but pulses inflation is expected to be in double digits,” said Paras Jasrai, senior analyst, India Ratings and Research.

Pulses inflation inched up to 17.1 percent in May compared with 16.8 percent in the previous month.

Arhar, which is primarily consumed in the country, was trading 33.7 percent up in the wholesale market in June compared with the previous year.

It was trading at Rs 13,737.9 per quintal for the first fortnight in June.

Vegetable inflation was a high 27.3 percent in May.