India: Food Price Inflation in 2022

Managing the COVID-19 pandemic in 2020-21, Prime Minister Modi’s National Democratic Alliance led government’s focus is shifting to steering the Indian economy back to pre-pandemic growth levels, and contain inflation within a reasonable range. India’s Wholesale Price Index -based food inflation for June 2022 touched 7.3 percent, lower than May's 10.9 percent but still higher (6.3 percent) than a year ago. FAS New Delhi foresees rising wholesale food prices to likely fuel consumer food prices in the coming months. Food categories registering the highest year-on-year price increases include vegetables, condiments and spices, vegetable oils, animal feed, dairy products, and meat/egg/fish products. Domestic food price movements will continue to remain vulnerable to expected continued high global commodity and fuel prices. Food prices will also depend on the progress and performance of the 2022 monsoon which is critical for the planting and production prospects of the 2022 kharif (fall harvested) season crops.