Even as food inflation across the world is prevailing at high rates (up to as high as 414 per cent), it is pushing up the overall inflation. In India, retail inflation in July jumped to a 15-month high of 7.44 per cent mainly due to high food prices.
Among countries in the world, Venezuela has the highest food inflation at 414 per cent. In the South American country, food and drinks are substantially more expensive than in any other part of the world.
In India, the inflation in the food basket was 11.51 per cent in July compared to 4.55 per cent in June and 6.69 per cent in July 2022, as per the data.
Venezuela is followed by Lebanon with a 280 per cent food inflation rate, Argentina (117 per cent), Egypt (68.4 per cent), Turkey (60.72 per cent), and Pakistan (39.52 per cent).
Apart from these countries, food inflation in India at 11.51 per cent is also lower than 10 other nations — Iran (37.1 per cent), Nigeria (25.25 per cent), Hungary (22 per cent), Poland (17.8 per cent), United Kingdom (17.3 per cent), Belgium (13.86 per cent), EU (13.81 per cent), Ukraine (13.3 per cent), France (12.7 per cent), and Sweden (12.54 per cent), according to list compiled by World of Statistics.
Countries that recorded negative food inflation were South Sudan (11.4 per cent), Afghanistan (-5.8 per cent), China (-1.7 per cent), and Qatar (-0.01 per cent). It means food prices are falling in these countries.
According to a report by rating agency Crisil on Wednesday, urban poor have been the most impacted by 15-month high consumer price inflation (CPI) in July. The high-income segment in urban areas faced the lowest inflation burden, as food has a relatively low share in their consumption basked, Crisil Market Intelligence and Analytics said in a note.
“Poorest segment in urban areas faced highest inflation rate in July,” said the note, released days after official data said that the headline inflation accelerated to 7.44 per cent for July.
“The poorest segment in both urban and rural areas faced a higher inflation burden than their high-income counterparts, as food inflation accelerated sharply,” the Crisil note added.
Last week, RBI Governor Shaktikanta Das said headline inflation, after reaching a low of 4.3 per cent in May 2023, rose in June and is expected to surge during July-August led by vegetable prices.
“While the vegetable price shock may reverse quickly, possible El Niño weather conditions along with global food prices need to be watched closely against the backdrop of a skewed south-west monsoon so far,” Das said.
He also said the month of July has witnessed an accentuation of food inflation, primarily on account of vegetables. The spike in tomato prices and a further increase in prices of cereals and pulses have contributed to this. Consequently, a substantial increase in headline inflation would occur in the near term.
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