Introduction

Gro's India Food Price Inflation Index tracks food prices weighted by consumption spending and provides real-time tracking of inflation as experienced by the Indian consumer. The index, which updates weekly, combines 17 national price series that aggregate hundreds of local prices from India’s Department of Agriculture and Cooperation. The India Food Price Inflation Index can be used with Gro’s India Retail Price Volatility Indices to track an item's realized volatility over time and permit comparisons between items.

Customers Use the Model to: 

  • Track food inflation in India in near real time
  • Analyze which goods are driving overall food inflation on a month-to-month basis 
  • Build a custom-weighted index to analyze how a basket of goods central to a company’s core business is affected by inflation 
  • Use price indices to predict revenues or costs in real time

Why It Matters

India is an increasingly important player in global agricultural markets. Understanding food inflation is especially important because food accounts for a large share of total household expenditures. 

Gro developed this index in response to the 2021 farmer protests about the government’s planned reforms to agricultural policy, in order to measure food inflation on a real-time basis and capture price volatility per product.

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This index was developed as part of a March 2021 Gro webinar on farmer protests in India.