Retail Inflation Cools Down: Thali Prices Drop Sharply in August
Retail inflation softening has led to a significant decrease in prices for both vegetarian and non-vegetarian thalis in August, according to CRISIL MI&A Research. Home-cooked vegetarian thalis dropped by 8%, while non-vegetarian thalis saw a steeper decline of 12% year-over-year. Key contributors include lower tomato and LPG prices.
- Country:
- India
Retail inflation appears to be losing its bite, as both vegetarian and non-vegetarian thalis (full meals) saw sharp price declines in August compared to last year and the previous month, according to the latest CRISIL MI&A Research report. The data reveal a notable 8% annual drop in the cost of vegetarian thalis. Non-vegetarian thalis experienced an even steeper year-over-year decline of 12%.
The significant reduction in vegetarian thali costs is largely attributed to a dramatic 51% drop in tomato prices, which account for 14% of the thali's cost. Tomato prices plunged from Rs 102 per kg in August 2023 to Rs 50 per kg in August 2024, thanks to fresh arrivals from southern and western states.
Additionally, a 27% drop in LPG prices also contributed significantly. The price of a 14.2 kg LPG cylinder in Delhi fell to Rs 803 in March 2024 from Rs 1,103 in August 2023. Prices of vegetable oil, chilli, and cumin—together making up less than 5% of the veg thali cost—fell by 6%, 30%, and 58% respectively. For non-vegetarian thalis, a 13% year-on-year drop in broiler chicken prices was the major factor.
However, the decline was somewhat offset by rising onion and potato prices, which increased by Rs 15 and Rs 13 per kg, respectively, due to lower yields from the rabi harvest.
On a monthly basis, vegetarian thali costs dropped by 4%, while non-vegetarian thalis saw a 3% decrease. This month-on-month fall was driven by a 23% drop in tomato prices and reduced broiler chicken consumption during the Shravan month. Nonetheless, a 2-3% monthly increase in potato and onion prices prevented a more substantial decline.
(With inputs from agencies.)
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