India’s core inflation has dropped to a decade-low, signaling broad-based price stability, but food inflation continues to pose a challenge, according to the Economic Survey 2024-25.
Key food items like vegetables, pulses, and cereals have seen price volatility due to unseasonal weather conditions, supply chain disruptions, and rising global commodity costs. For instance, onion and pulse prices surged significantly in Q4 FY24, prompting government intervention.
To stabilize food prices, the government has deployed measures such as buffer stocking, easing import restrictions, and imposing export bans on key agricultural commodities like rice and wheat.
Meanwhile, the Reserve Bank of India (RBI) remains cautious about rate cuts, with inflation control as a top priority. Analysts suggest that while the broader economy benefits from low core inflation, food inflation will remain a key focus area in policy decisions, particularly in an election year.
