Food Price Inflation in India Increasesto 9.28% during May

India’s food price inflation stood at 9.28 per cent during the month of May according to the new government data released. However, the authorities said they were not able to collect data from all designated factories and shops across the country due to the lockdown. 

The National Statistical Office did not release data for the April month making it hard for the comparison. However, the fall of food and Tobacco in May is 151.3 points, from 151.4 in April show that the inflation was high in April also. 

“Inflation rate in India for the Consumer Food Price Index (CFPI) in the month of May 2020 for ‘Rural, ‘Urban and Combined’ sector are 9.69%, 8.36%, and 9.28%, respectively,” the NSO said. 

According to the NSO, the data were collected by staff who went out on personal visits and telephone calls to the designated outlets in selected markets in May. NSO collected data from 987 urban markets and 836 villages for the survey this year. 

In March, food inflation reduced to 8.76% when compared to 10.81% recorded in February 2020. 

"Because of the continued limited transactions of products in the market in the month of May 2020 as well, it has been decided to release the Price Movement of Sub-groups or Groups of CPI, following the principles of adequacy," the NSO said. 

Meanwhile, contraction in major sectors such as mining, electricity, manufacturing during the lockdown led to a plunge in India’s factory production. 

As the preventive measures implemented in the month of March, April, and May to contain the spread of COVID-19 resulted in a complete halt of production across the country. This impact has led to the fall of output production completely as the unlock started in the country, the government is hoping to revive the production.