Why are the prices of wheat and edible oil the reason for inflation?
The pace of inflation has been slow in November this year. According to government data, the inflation rate of 6.21% in October has come down to 5.48% in November. This decline has come mainly due to the reduction in the prices of food items, especially vegetables. According to the data of the National Statistical office (NSO), the inflation rate of food items came down to 9.04% in november, which was 10.87% in October. It was 8.70% in november last year.
Due to good production of vegetables in winter, their prices are expected to come down. The inflation rate of vegetables was 42.23% in october, which came down to 29.33% in November. Even though the pace of increase in the prices of food items has slowed down, two things (wheat and edible oil) are still weighing heavily on the pocket of the common man.
The prices of wheat and edible oil are a major reason for inflation because both these things are very important in indian food and their consumption is very high. When their prices increase, the budget of the common man's house gets spoiled and inflation increases.
what is the meaning of inflation rate?
Inflation rate tells us how fast the prices are increasing in an economy. Suppose the price of onion was Rs 10 per kg last year and this year it has become Rs 15 per kg. This means that the price of onion has increased by Rs 5 (ie 50%). In this way, the inflation rate of onion will be 50%. Inflation rate is calculated every month. It is done in two ways: year-on-year i.e. how much the prices have increased this year compared to last year and month-on-month i.e. how much the prices have increased this month compared to last month.
Wheat and oil prices have become a hindrance in relief from inflation
The rising prices of wheat and oil are affecting the pocket of the common man. The wholesale price of wheat in Delhi's Najafgarh Mandi is around Rs 2900-2950 per quintal, while last year at this time it was Rs 2450-2500. Inflation rate of wheat and flour was 7.88% in november, while for maida this figure was 7.72%.
Inflation rate of vegetable oils was 13.28% in November. According to the data of the Department of Consumer Affairs, the average retail price of packed palm oil is Rs 143 per kg, which was Rs 95 last year. The price of soybean oil is Rs 154 per kg, which was Rs 110 last year. The price of sunflower oil is Rs 159 per kg, which was Rs 115 last year. The price of mustard oil is Rs 176 per kg, which was Rs 135 last year.
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