Inflation Update: Finance Ministry in its report expressed concern over the rising prices of tomatoes

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Inflation To Hit Households: Inflation of tomato, myrt, cumin, ginger, arhar dal and urad dal has robbed the pockets of common people. So the inflation of tomatoes has increased the concern of the Finance Ministry as well.  In the Annual Economic Review released by the Economic Division of the Ministry of Finance for the financial year 2022-23, it is clearly written that domestic reasons like unseasonal rains have kept pressure on the prices of some vegetables like tomatoes. 

The Finance Ministry has said in this report that despite the reduction in wholesale-based inflation with the effect of El Nino, consumers have to bear the brunt of its effect on retail prices.  According to the Ministry of Food Consumer Affairs, on July 6, tomatoes are available at Rs 120 in Delhi, Rs 140 in Gurugram, Rs 152 in Kolkata and Rs 120 per kg in Patna.  

The Finance Ministry said in its report that due to improvement in the global supply chain, policy decisions of the government and the strictness of RBI’s monetary policy, there has been a decrease in inflation in the second half of the financial year 2022-23. But due to unseasonal rains, the prices of some vegetables, including tomatoes, are increasing. 

< p style ="text-align: justify;"At the same time, the Finance Ministry said in the Monthly Economic Report that due to the strong fourth quarter, the pace of economic growth in 2022-23 has been 7.2 percent, which is more than the 7 percent estimate of February 2023. 

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