BoB Important Commodity Index (BoB ECI) has elevated on the quickest tempo since August 2023 by 5.9 per cent in March 2024, on YoY foundation and by 0.4 per cent, on a sequential foundation, says Dipanwita Mazumdar, Economist, Financial institution of Baroda. On a seasonally adjusted foundation, the rise is sharper at 0.8 per cent. A lot of that is attributable to the rise in costs of greens equivalent to potato and onion. Aside from this, edible oils and pulses have additionally offered some little bit of discomfort on meals inflation, the analysis stated.
Excessive-frequency worth knowledge confirmed that vegetable costs, particularly potato and onion proceed to pose appreciable upside threat to meals inflation. Potato costs have been impacted as manufacturing was hampered because of unseasonal rains in December, the analysis stated.
On a YoY foundation, BoB ECI inched as much as 5.9 per cent in March 2024, the sharpest tempo of improve within the index noticed since August 2023. That is greater in comparison with final month’s improve of 4.2 per cent within the index. 9 out of 20 commodities have registered some momentum in costs. Greens equivalent to potato and onion costs have gained significantly. From 5.3 per cent and 28.9 per cent improve respectively seen in February 2024, it inched as much as 22 per cent and 40.1 per cent in March 2024 (on YoY foundation). Different gadgets the place worth build-up was seen have been wheat (atta), edible oils equivalent to sunflower oil, soya oil and mustard oil. Some elements of pulses equivalent to Gram dal, Masoor and Urad additionally confirmed some little bit of upward correction, the analysis stated.
On MoM foundation, BoB ECI rose by 0.4 per cent in March 2024 from 0.2 per cent decline seen in February 2024. Notably, on a sequential foundation, BoB ECI has been on a path of improve for the primary time since December 2023. A sequential momentum was seen in 13 out of 20 commodities. The YoY and sequential image broadly mirrored the identical development, the analyst stated.
For the primary 4 days of April 2024, BoB ECI has inched up additional by 6.7 per cent, on YoY foundation. On MoM foundation, it has inched up by one other 0.5 per cent. The sequential decide up in costs was seen for edible oils, sugar and milk. Amongst greens, tomato costs reversed their trajectory noting an upward correction in April 2024. Potato costs additionally elevated reasonably whereas onion costs moderated, as per Financial institution of Baroda analysis.
(This report has been revealed as a part of the auto-generated syndicate wire feed. Aside from the headline, no enhancing has been finished within the copy by ABP Reside.)
