Retail price inflation for wheat, rice, elevated as food inflation cools

Government imposes limits on the quantity of wheat that traders, wholesalers can hold until March 31

The retail price inflation rate in rice, wheat and some pulses such as tur remained elevated in May, explaining the government’s measures on these items. On the other hand, the overall food inflation cooled down to an 18-month low of 2.91 per cent and overall inflation eased to a 25-month low of 4.25 per cent in June.

The consumer price index (CPI)-based inflation rate in wheat remained in double digits for a year even as it eased to a ten-month low of 12.61 per cent in May, from 15.39 per cent in the previous month. This was despite the fact that there was a high base effect of 9.45 per cent in May last year.

The rate of price rise in rice inched down to 11.33 per cent in May from 11.37 per cent in April, remaining in double digits for the eighth month in a row. Part of the reason for high inflation rate was a low base of 2.83 per cent in May of 2022.