Factors behind rising food inflation in India

Multiple headwinds are expanding food inflation beyond vegetables. The RBI’s August report highlights an 11 per cent jump in onion rates and a 40 per cent spike in sugar prices. Commodity specialists note that the sugar rally was triggered by global supply deficits, though the market cooled slightly after government intervention. In the oil complex, domestic prices are tethered to global futures, which have hit four-month highs because of tightened supply and disrupted trade flows.