The cost of preparing both vegetarian and non-vegetarian meals at home declined by 5% in February compared to January, according to a report released by Crisil on Monday.
The report attributes the decline in the vegetarian thali cost to lower vegetable prices, particularly onions, tomatoes, and potatoes. For the non-vegetarian thali, the decrease was primarily driven by lower broiler (chicken) prices.
With the arrival of fresh rabi crops, vegetable prices are expected to remain subdued, offering continued relief in household food expenses. However, the report notes that above-normal temperatures in March could impact the shelf life and quality of onions, which need to be stored for the next six months. Additionally, wheat, the most crucial rabi crop, may also be affected in terms of both quantity and quality.
The cost of preparing a thali is calculated based on input prices across different regions—north, south, east, and west India. The report examines how fluctuations in the prices of essential ingredients such as cereals, pulses, broilers, vegetables, spices, edible oil, and cooking gas impact household expenditure.
The findings align with official data indicating a steady decline in retail inflation. According to the Ministry of Statistics, inflation based on the Consumer Price Index (CPI) fell to a five-month low of 4.31% in January, aided by a drop in vegetable and pulse prices. CPI inflation had previously declined from a 14-month high of 6.21% in October to 5.48% in November and further to 5.22% in December. Food inflation stood at 6.02% in January 2025, the lowest since August 2024.
In response to easing inflationary pressures, RBI Governor Sanjay Malhotra announced a 25-basis-point cut in the policy rate, reducing it from 6.5% to 6.25%. He stated that inflation is expected to moderate further and align with the central bank’s target. With retail inflation on a downward trajectory, the RBI is expected to continue adopting a soft monetary policy, increasing credit availability for businesses and consumers, which could support economic growth.
-IANS
