New Delhi: The central bank RBI said in its annual report released today on May 27 that due to the difference in demand and supply, prices of food items like pulses and edible oils will remain under pressure and their prices may increase. However, due to bumper production in 2020-21, the price of food grains may soften. Apart from this, the central bank estimates that there will be fluctuations in the price of crude oil globally for the next few months.
Food inflation suggests wholesale price index (WPI) and consumer price index (CPI) based inflation. According to the report, the lockdown imposed across the country due to the Corona epidemic last year led to an increase in CPI-based food inflation while WPI-based food inflation declined. According to the RBI report, this can be gauged by the role of obstruction in the supply chain.
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The central bank, referring to the second wave of corona in its annual report, said that it would have an impact on inflation. Due to the epidemic, competition in the market has come down, the supply chain has been affected since March 2021 due to increasing cases of corona infection and regulations related to containment. This may affect the inflation.
