Inflation in India: Not just vegetables, but high fruit prices also squeeze kitchen budgets

Not just your vegetarian thali, but also the fruit platter on your dinning table has become more expensive. Soaring prices of fruits has become one of the reasons experts believe retail inflation in July is expected to surpass six per cent and will remain high in August as well.

Fruits (ex nuts) account for 2.26 per cent of the retail inflation basket, of which a quarter is accounted for by apples, which have seen a sharp price increase, according to the ET report.

The retail price of apples was 15 per cent higher in August at Rs 175.63 per kg, compared with Rs 158.2 per kg average in May, according to a report in The Economic Times (ET).

Experts said retail inflation in July is expected to surpass six per cent due to rising food prices and will remain high in August.

Arjuna's eye to tame inflation: RBI Guv

"We have to stand in readiness to go beyond keeping Arjuna’s eye to deploying policy instruments, if necessary" to contain inflation, said Reserve Bank Governor Shaktikanta Das on Thursday, during the credit policy announcement.

Headline consumer price index-based inflation projection for the second quarter of 2023-24 has been revised up substantially, primarily due to the price shock from vegetables, at 6.2 per cent by the RBI form 5.2 per cent estimated in June.

Unveiling the bi-monthly monetary policy, Governor Das said the moderation in headline inflation to 4.6 per cent in the first quarter of 2023-24 was in line with the projections set out in the June MPC meeting.

There was a pick-up in headline inflation to 4.8 per cent in June due to an upturn in food inflation.