Commodity prices: A year is a ‘dear’ long time

Sky rocketing commodity prices are eating away at a major chunk of the middle class's income.

In fact, it is the necessary commodities like wheat, groundnut oil, milk and sugar that have seen a maximum rise in price.

Retail price of some of the commodities are currently at their historic high. Prices of grocery items have shot up by an average 20% to 25% in a year - double than the average increment of 10% to 15% received by employees across major sectors.

If there is some hope it is in the economists' predictions that even if the monsoon is some what lower than average, prices of food articles are likely to stabilise. Price of wheat has shot up 53% in a year's time, from Rs15 per kg to Rs23 per kg currently.

Groundnut oil has also crossed Rs1,300 per 15 kg level which was available at some Rs950 per kg just a year ago - a price increase of 37%.

Basmati prices have shot up by almost 15% from Rs70 per kg to Rs80 per kg. Milk is now costly by 30% from Rs23 per litre to Rs30 per litre. Although price of sugar has cooled off, it is still costlier by 23% in a year's time at Rs32 per kg.

Maida prices have risen by a whopping 76%in a year's time, from Rs17 per kg to Rs30 per kg. "Price of food articles are stabilising and is likely to continue by October even if the monsoon is slightly below average. If monsoon is good, we could see 5%-6% increase in the total agriculture produce," said economist, YK Alagh. He said agriculture produce prices have corrected in the last couple of months and this has given some relief to common man.

"In some commodities, including groundnut oil, there is a genuine problem as the sowing is decreasing. In all, it is not the food price but the energy price which is driving inflation." Lentils, meanwhile, are dearer by 15% to 30%, even after some correction.

Among dals, Urad has shot up the most from Rs64 per kg to Rs84 per kg, a 31% rise.