Is food inflation easing down?

31 May 2022 , 02:12 PM

According to reports, retail price of rice has fallen by 7% in the past 10 days. Retail price of wheat flour has come down by 5% in this period.  This has brought some easing in food price inflation.

The decline in rice prices is being attributed to the arrival of summer rice harvest in the market. The decline in wheat flour price is being attributed to decline in price of wheat because of various price control measures that the government has taken, like temporarily banning the export of wheat.

Decline in price of rice and wheat flour can come as a big relief to a large segment of Indian population. The country is battling both high inflation and high unemployment at the same time. According to Centre for Monitoring of Indian Economy, unemployment rate of the country at the end of March stood at 7.83%. The situation where both unemployment and inflation are rising is known as stagflation. Any decline on the inflation front is a positive news for Indian economy and Indian stock market.