With the exception of a 0.1% dip in December 22, food prices have been rising steadily since February 2022, with CPI food inflation rising by 45.07% in February 2023 compared to February 2022.
Fuel price increases, energy expenses, rupee depreciation against the dollar driving up the cost of imported food and non-food items, the Russia-Ukraine war, and other domestic and international factors all point to further high prices in the months to come.
Consumer Price Index (CPI)-based headline inflation rose by 31.55% in February 2023 compared to February 2022, the highest rate in 49 years (since 1974). The inflation rates in our neighbours’ nations are 3.6% in Afghanistan, 6.4% in India, and 8.8% in Bangladesh.
Prices for the staple grains rice Basmati (+11.0%) and rice Irri-6 (+9.4%) climbed in February 2023 compared to January 2023, increasing by 76.0% for rice Irri-6 and 65.5% for rice Basmati from the same period last year. Contrarily, compared to the prior month, the cost of wheat (-4.3%), wheat flour (subsidised) (-6.5%), and wheat flour (Fine) (-2.3%) decreased.
Prices for non-cereal food commodities rose in February compared to January for chicken (+14.1%), cooking oil (+9.7%), ghee (+7.6%), sugar (+1.5%), and pulses (Gramme (+10.2%), Mash (+8.9%), Masoor (+7.6%), and Moong (+6.3%).
In comparison to the same period last year, there has been an increase in chicken (+94.0%), cooking oil (+41.1%), ghee (+34.7%), sugar (+6.8%), and pulses (Gramme (+58.4%), Mash (+54.4%), Masoor (+29.4%), and Moong (+69.5%). Eggs, on the other hand, saw a price drop (-1.9%) since January 2023.
Some food items showed a significant price increase during the pre- and post-flood periods (June 2022 and February 2023); for example, the price of onions rose by up to 189%, that of rice Irri by 107%, that of wheat flour by 72%, that of the pulse Moong by 71%, that of rice Basmati by 55%, and that of milk by 39%.
The amount of wheat flour that can be purchased with a day’s worth of casual, unskilled labour at the average salary in February 2023 increased by 8.0% from the previous month. Super Petrol (+9.0%) and Diesel (+7.0%) saw retail gasoline prices rise in February 2023 in comparison to the prior month.
