• UGI USER
  • Jul 07, 2024
  • 10 Likes
  • 0 Comments

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.