• UGI USER
  • Apr 26, 2024
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“GLOBAL RECOVERY POTENTIAL; FOOD PRICES EXPECTED TO DECREASE.”

Why in the news?

“India’s Finance Ministry reports global economic rebound, easing food inflation, and positive domestic indicators for March 2024.”

source:medium

About the Global Economic Outlook:

  • The Finance Ministry of India highlighted a positive global economic trend, with major economies experiencing growth rebounds, which could benefit India’s economy.
  • Despite concerns over high food inflation in some major economies, India saw a slight decrease in food inflation to 8.5% in March, with retail inflation at a 10-month low of 4.85%.
  • The ministry emphasised the importance of the upcoming monsoon forecast, anticipating above-normal rainfall to positively impact harvests and potentially further ease domestic food prices.
What is Consumer Food Price Inflation (CFPI)?

  • Consumer Food Price Inflation (CFPI) measures the rate of price changes in food items in a consumer’s basket.
  • It is a sub-component of the Consumer Price Index (CPI), used by the Reserve Bank of India (RBI).
  • CFPI tracks prices of commonly consumed food items like cereals, vegetables, fruits, dairy, and meat.