in the case of the egg, meat and fish food sub-group the change in expenditure share in this group in the lower (0-40) expenditure fractile is 2.78 per cent
| Photo Credit:
istock
Overlapping supply shocks coupled with the evolving demand dynamics for food products, driven by change in dietary habits, underscore the need for careful monitoring of food inflation, cautioned RBI officials.
A mapping of changes in expenditure shares with persistence parameter reveals that food sub-groups that saw an increase in expenditure on animal proteins (that is egg, meat, fish, and milk), fruits, oils and fats, and processed food and beverages, have also become more persistent in recent years, per their analysis published in RBI’s latest annual report.
For example, in the case of the egg, meat and fish food sub-group, which carry 4 per cent weight in CPI-Food and Beverages, the change in expenditure share in the lower (0-40) expenditure fractile is 2.78 per cent. The same for the middle (40-50) and higher expenditure (50-100) fractiles is 1.71 per cent and 0.39 per cent, respectively. The change in persistence parameter across this food sub-group is 0.03.
A fractile is a statistical measure used to divide a distribution into equal parts. For the analysis, change in expenditure share is derived as variation in 2022-23 over 2011-12.
Persistence parameter is the degree to which a variable’s value persists over time. For the study, the change in persistence has been derived as variation in persistence parameter between 2021-24 and 2016-19.
In the case of the Processed Food and Beverages food sub-group, which carry 5.6 per cent weight in CPI-Food and Beverages, the change in expenditure share in this group in the lower (0-40) expenditure fractile is 5.17 per cent. The same for the middle and higher expenditure fractiles is 5.42 per cent and 6.35 per cent, respectively. The change in persistence parameter across this food sub-group is 0.28
RBI staffers noted that the shift in expenditure towards fruits, egg, meat and fish, milk, and oils and fats are the largest across lower fractile households, while increased expenditure on processed food and beverages is greater among higher fractile groups.
Cereals, however, show a diverging trend —a rise in persistence despite a fall in expenditure shares indicating the dominance of supply side factors. Inflation persistence is estimated to have ebbed in vegetables, sugar and pulses.
Published on May 29, 2025
in the case of the egg, meat and fish food sub-group the change in expenditure share in this group in the lower (0-40) expenditure fractile is 2.78 per cent
| Photo Credit:
istock
Overlapping supply shocks coupled with the evolving demand dynamics for food products, driven by change in dietary habits, underscore the need for careful monitoring of food inflation, cautioned RBI officials.
A mapping of changes in expenditure shares with persistence parameter reveals that food sub-groups that saw an increase in expenditure on animal proteins (that is egg, meat, fish, and milk), fruits, oils and fats, and processed food and beverages, have also become more persistent in recent years, per their analysis published in RBI’s latest annual report.
For example, in the case of the egg, meat and fish food sub-group, which carry 4 per cent weight in CPI-Food and Beverages, the change in expenditure share in the lower (0-40) expenditure fractile is 2.78 per cent. The same for the middle (40-50) and higher expenditure (50-100) fractiles is 1.71 per cent and 0.39 per cent, respectively. The change in persistence parameter across this food sub-group is 0.03.
A fractile is a statistical measure used to divide a distribution into equal parts. For the analysis, change in expenditure share is derived as variation in 2022-23 over 2011-12.
Persistence parameter is the degree to which a variable’s value persists over time. For the study, the change in persistence has been derived as variation in persistence parameter between 2021-24 and 2016-19.
In the case of the Processed Food and Beverages food sub-group, which carry 5.6 per cent weight in CPI-Food and Beverages, the change in expenditure share in this group in the lower (0-40) expenditure fractile is 5.17 per cent. The same for the middle and higher expenditure fractiles is 5.42 per cent and 6.35 per cent, respectively. The change in persistence parameter across this food sub-group is 0.28
RBI staffers noted that the shift in expenditure towards fruits, egg, meat and fish, milk, and oils and fats are the largest across lower fractile households, while increased expenditure on processed food and beverages is greater among higher fractile groups.
Cereals, however, show a diverging trend —a rise in persistence despite a fall in expenditure shares indicating the dominance of supply side factors. Inflation persistence is estimated to have ebbed in vegetables, sugar and pulses.
Published on May 29, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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