India’s More Immediate Worry Is Tomatoes, Not Trump
A spurt in food prices dashes hopes of an early rate cut. The US leader’s policies could pose a further challenge.
Food prices are worrying Indians more than the US president-elect.
Photographer: NurPhoto/Getty Images
Donald Trump is not India’s No. 1 problem. At least not right now. His hawkish trade policy may well emerge as an outsize threat to supply chains and global growth. But a bigger, more immediate worry for the central bank in Mumbai is tomatoes.
Or, to be more specific, a 161% jump last month in tomato prices — due to late and heavy rainfall — from a year ago. With potatoes and onions also becoming dearer, food expenses are out of control. The average cost of a homecooked meal in October — a standard fare of rice, roti, dal, veggies, salad and yoghurt — was the steepest in 14 months, according to CRISIL, an affiliate of S&P Global Inc.