India’s kharif crop sowing has seen a significant surge, surpassing the average area and exceeding last year’s figures. This positive trend, driven by improved monsoon conditions, bodes well for food security and potentially easing food inflation. While some crops show declines, the overall picture points to a robust harvest and a positive outlook for the agriculture sector.
Betsey Stevenson, a former Obama administration economist, has warned of potential food inflation if undocumented immigrant farm workers are deported, citing their significant role in American agriculture. This warning comes amid former President Trump’s plans for large-scale deportations and his controversial views on immigration.
This week’s data-driven insights explore various economic trends, including workforce reductions at Reliance Industries, credit-deposit mismatch worries in India, growing US recession fears, and the impact of food inflation. We also examine challenges faced by young farmers and the government’s response to the medical entrance exam fiasco.
The cost of preparing a vegetarian thali in India increased by 11% in July compared to the previous month, primarily driven by soaring tomato prices. The price of tomatoes rose 55% on-month due to a sharp cut in supply caused by scanty rainfall and heatwaves. Non-vegetarian thali costs also increased by 6% due to rising prices of other ingredients like onions and potatoes. Overall, the rising cost of home-cooked meals highlights the impact of food price inflation in India.
Nigeria’s inflation rate has hit a 28-year high, reaching 34.19% in June 2024, according to the National Bureau of Statistics (NBS). The surge is driven by a significant increase in both headline and food inflation, with food prices rising by 40.87% year-on-year. This alarming situation highlights the urgent need for robust economic strategies and interventions to address the economic strain and growing hunger crisis.
India can expect less severe food inflation in the future due to its modern supply chains and diversified sources, according to Ashima Goyal, a member of the RBI Monetary Policy Committee. These supply chains can quickly address sudden price spikes in specific food items. Stable agricultural prices are crucial for non-inflationary growth, and India should focus on increasing agricultural productivity. As India develops, the weight of food in household budgets will decrease, and food consumption will become more diversified, reducing the impact of future food price shocks.
Brits have been left reeling after a ‘posh’ egg mayo sandwich with an eye-watering price tag emerged, while M&S defends the sandwich’s luxurious ingredients. The sandwich, which features a deep-filled egg mayo and watercress filling with extra free-range egg slices, rocket leaves, and thick 9-grain bread, has been met with outrage by shoppers who believe the £6 price tag is excessive. Meanwhile, M&S has come under fire for its Chip Shops Scraps, a tub of fried fish batter pieces that has also seen a price increase since its debut in 2018, leading to accusations of targeting middle-class consumers.
