Cost of home-cooked food plate declined 5% in Feb: Report

The cost of preparing thali at home declined by 5% in February compared to the corresponding figure for January this year, according to a Crisil report released on Monday. 

For the vegetarian thali, the decline was driven by lower vegetable prices, particularly of onions, tomatoes and potatoes.

Going ahead, the arrival of fresh rabi crops is expected to keep vegetable prices subdued, offering continued relief for vegetarian thali costs.

However, temperature conditions in March that have been above normal can impact the shelf life and quality of onions, which need to be stored for the next six months, as well as the quantity and quality of wheat – the most significant crop of the rabi season, the report states.

The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India. The monthly change reflects the impact on the common man’s expenditure. The data also reveals the ingredients (cereals, pulses, vegetables, spices, edible oil and cooking gas) driving the change in the cost of the thali.

The ICRA report is in line with official figures that India’s retail inflation is on a downward trajectory. Inflation based on the Consumer Price Index fell to a 5-month low of 4.31% in January as prices of vegetables and pulses eased during the month, bringing respite to household budgets, according to figures released by the Ministry of Statistics.

The easing of inflation reflects a steadily declining trend after having touched a 14-month high of 6.21% in October. CPI inflation had declined to 5.48% in November and 5.22% in December.

The food inflation at 6.02% in January 2025 is the lowest after August 2024.

RBI Governor Sanjay Malhotra announced a 25 basis cut in the policy rate from 6.5% to 6.25% in the monetary policy review to accelerate growth amid global uncertainties.

He said that inflation has declined and is expected to moderate further and gradually align with the RBI’s target.

Now, with the retail inflation continuing with its downward trend, the RBI will have more headroom to follow a soft money policy to make more credit available to businesses and consumers, which will propel economic growth.

(This story was taken from syndicated feed and was only edited fors style by Gujarat Samachar Digital team)