Vegetable prices in India spiked
46.59% in July year over year, another ugly bullet point in the country’s persistent struggle with massive food inflation.
In particular, the onion — a staple vegetable whose rising prices have dogged ruling parties in the past — saw a particularly dramatic jump. From Mint:
Across cities, onion prices are hovering at anywhere between Rs.50 and Rs.80 a kilo, nearly double last month’s levels. The latest wholesale price index (WPI) numbers released on Wednesday show that onion prices rose 144% in July over the year-ago period, after a similar increase in the previous month. Since January, onion price levels have been nearly double what they were a year ago.
And India has already lost hundreds of billions of dollars due to inflation in the past few years. Of course, the country’s poor population, which spends the lion’s share of income on food, has been hit hardest.
India’s central bank has cut interest rates three times this year, but lowering it further could further crush the rupee and drive inflation higher, the Journal reported.