KEY TAKEAWAYS

▪ Food inflation has registered a sharp fall recently. The RBI monetary policy cited excess supply as one of the reasons.

▪ Decline in vegetable prices is the biggest reason for crash in food inflation.

▪ Vegetable prices more volatile than change in domestic production. Vegetables also have a low weight in exports, imports. ▪ This shows factors other than excess supply might be responsible for crash in food prices.