OVERHAULING PRODUCER PRICE INDEX: ENHANCING ACCURACY AND RELEVANCE
Why in the news?
- The prices of vegetarian and non-vegetarian food plates have surged, reaching six and seven-month highs in June, respectively.
- CRISIL’s food cost tracker highlights significant inflation in key ingredients such as tomato, onion, potato, rice, and pulses, with official food inflation at 8.7% in May.
Source: Forbes
Key Developments
- The average cost of a vegetarian meal reached ₹29.4 in June, a 10% increase from the previous year, and 6% higher than May levels.
- Non-vegetarian meal costs were 4% lower than a year earlier but rose 4% sequentially to ₹58.
Understanding Thali:
Components:
- Veg Thali: Includes roti, vegetables (onion, tomato, potato), rice, dal, curd, and salad.
- Non-Veg Thali: Similar to veg thali but replaces dal with chicken.
Cost Calculation:
- CRISIL calculates the average cost of preparing a thali at home using input prices from across north, south, east, and west India.
Understanding Thalinomics
Thalinomics involves analyzing the economic dynamics of a thali, a traditional Indian meal with diverse dishes. This concept delves into the affordability, price fluctuations, and broader economic implications of producing and consuming thalis in India. |