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New Delhi: The ongoing volatility in the prices of key food items such as tomatoes, onions, and potatoes (collectively known as TOP) and pulses continues to pose significant challenges for the <keyword id="19913109" type="General" weightage="20" keywordseo="monetary-policy-committee" source="keywords">Monetary Policy Committee</keyword> (MPC) of the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords">RBI</keyword>), highlights a report by <keyword id="19898108" type="General" weightage="20" keywordseo="SBI" source="keywords">SBI</keyword>. "Current volatility in prices of TOP and pulses continues to challenge the MPC, keeping the headline above target at 5.1 per cent in June 2024," said the report. The report highlighted that this instability in <keyword id="19960157" type="General" weightage="20" keywordseo="food-prices" source="keywords">food prices</keyword> has kept the headline Consumer Price Index (CPI) <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword> above the targeted level, reaching 5.1 per cent in June 2024. While the inflationary pressures remain a concern, the report stated that there is hope on the horizon due to the currently above-normal <keyword id="19968257" type="General" weightage="20" keywordseo="monsoon" source="keywords">monsoon</keyword> and increased sowing activity, which are further supported by the potential onset of a La Nina event later in the year. "The currently above-normal monsoon and sowing, backed up by a potential La Nina event later, promise reprieve in later quarters," said the report. Importantly, the report added that it is now expected that the CPI will remain above the RBI's medium-term target of 4 per cent in all quarters up until the first quarter of FY26. This persistent overshoot highlights the ongoing inflationary pressures in the economy. "Notably, now the CPI is expected to be above RBI's target of 4 per cent in all quarters till Q1FY26," the report added. However, the report noted that the Monetary Policy Committee expects a moderation in inflation during the fourth quarter, which is anticipated to help keep the overall CPI projection for FY24 unchanged at 4.5 per cent. The SBI report also believes that the volatility in food prices, driven by uneven spatial and temporal distribution of monsoon rains, presents an upside risk to the current inflation projections. As a result, SBI maintains its CPI estimate for FY25 at 4.7 per cent year-on-year. In the latest MPC meeting on Wednesday, RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword> said inflation will moderate from July onwards as the monsoon has improved and global food prices have shown signs of easing in July. Das said, "Global food prices showed signs of easing in the month of July after registering an increase since March 2024." A degree of relief in food inflation is expected from the pickup in southwest monsoon and healthy progress in Kharif sowing. Buffer stocks of cereals continue to be above the norms, according to RBI Governor Shaktikanta Das. Das added, "Assuming a normal monsoon and taking into account the 4.9 per cent inflation print, Q1 CPI inflation for the current financial year (2024-25) is projected at 4.5 per cent, with q2 at 4.4 per cent, Q3 at 4.7 per cent and Q4 at 4.3 per cent. CPI inflation for the first quarter of next financial year (Q1 2025-26) is projected at 4.4 per cent."

High food prices raise concerns but improved monsoon offers hope for RBI: SBI report

<ul><li>Food inflation was the major driver of June CPI which hit a three-month high.</li><li>Tomato price inflation was at 64%, onions at 8.1%, and potato at 10.5% on a sequential basis.</li><li>Retail prices of pulses reported double-digit growth for the third consecutive month.</li><li>On a sequential basis, wheat and rice inflation also picked pace in June. </li></ul>India’s <keyword id="513422" type="General" weightage="20" keywordseo="retail-inflation" source="Orion">retail inflation</keyword> is at a three-month high in June at 4.8%, but it may not have reached its peak yet. Many climate related factors have been playing havoc with food inflation, and with most of North India under floods and this will only add to the pinch on the pocket, economists have warned. “Nine states had inflation above the average while six had above 5% — UP, Uttarakhand, Rajasthan, Kerala, Bihar and Haryana. The recent floods and landslides in the North will tend to push up inflation further in these states on the food side — especially vegetables and fruits which can add another 0.2% to headline inflation,” said Madan Sabnavis, chief economist at Bank of Baroda. Food inflation is a heavyweight in consumer price inflation (CPI), and drove it up in June, even as core inflation cooled as compared to the last month. “Food inflation was the major driver for higher headline inflation print; up by 218 basis points month-on-month versus 67 basis points in the last month due to a 12% hike in vegetables prices,” said a report by Phillip Capital. Price shock: Grains join tomatoes Vegetable prices however are on top of everyone’s minds, and it could get worse as prices of tomatoes refuse to inch down. In June, its prices went up by 64%. But other key vegetables like onion were high too at 8.1%, and potato at 10.5% – on a sequential basis. A report by SBI Ecowrap says that the past 10 years data shows that tomato price increase alone did not influence the overall CPI inflation much — except when it is accompanied by substantial increase in price of potato and onion. “We believe if tomato price increase without any substantial change in potato and onion then average inflation in Q2 FY24 will come near 5.8% yoy but if the TOP (tomato, onion, potato) inflation increases, then CPI might come around 6% yoy in Q2 FY24. Accordingly, average CPI for FY24 will vary between 5.2-5.4%,” says SBI Ecowrap. Grains are not too far behind either. Cereal and pulses inflation remained elevated in June at 12.7% y-o-y and 10.5% y-o-y, respectively. Retail prices of pulses, especially that of tur dal, have risen 24% y-o-y in June, reporting double-digit growth for the third consecutive month. Moreover, the<a href="https://www.businessinsider.in/india/news/india-sows-more-millets-and-less-rice-this-kharif-season/articleshow/101642365.cms"> sowing in rice and pulses is lower this Kharif season</a> due to delayed monsoons, and that doesn’t bode well for their prices which too are seeing upward pressure. “On a sequential basis, wheat and rice inflation also picked pace in June. Looking ahead, the sale of wheat and rice from the government’s buffer stock via Open Market Sale Scheme (OMSS) auctions could help cool retail prices of rice, wheat and atta. However, with regards to rice prices, deficient monsoons in West Bengal, a key rice-producing state, could impact sowing, putting upward pressure on prices,” said a report by CareEdge. Milk inflation moderated in June to 8.6% as compared to 8.9%. But it continues to remain sticky above 8%, reeling from the impact of a continued demand-supply mismatch and high fodder costs. “Milk prices could remain higher in the coming months, if unabating cereal inflation keeps cattle feed expensive,” CareEdge says. WPI is comforting, say experts RBI insisted in the last two monetary policy committee meeting updates that its decision to hold key interest rates is a pause not a pivot. Most experts had been hoping that it would go for rate cuts in the second half of the year, but the inflation picture is <a href="https://www.businessinsider.in/finance/news/with-inflation-cooling-rbi-may-slash-interest-rates-by-50-bps-this-financial-year/articleshow/100531780.cms">putting cold water on their hopes</a>. “While food prices will create inflationary pressures in the upcoming months due to uneven distribution of monsoon and lower kharif sowing, RBI stance would not be solely contingent on seasonal food inflation,” said Phillip Capital. Even at 4.8%, inflation is within the tolerance band of RBI, which is 4-6%. “The RBI will keep a keen eye here and it is almost given that nothing will change in the policy next month. More caution will be expressed on the inflation front,” said Sabnavis. CareEdge however says that wholesale price inflation (WPI) has been contracting and that is offering some comfort. India’s WPI has been in a deflationary zone for the second month in a row in May, as prices contracted by 3.48%. “Deflation in WPI will have a lagged impact on CPI inflation going forward. Having said that, RBI would remain cautious and adopt a wait and watch mode. We reaffirm our view that RBI would maintain an extended pause in 2023,” said CareEdge.

Inflation to inch higher still? Incessant rains will add to woes, warn economists

Even as the soaring prices of tomatoes are burning a hole in the common man's pocket, a farmer from Pune in Maharashtra has become a millionaire by selling his bountiful yield of the key kitchen staple for ₹3 crore in just over a month while overcoming various challenges. Farmer Ishwar Gaykar (36), from Pachghar village in Junnar tehsil of Pune district, had faced a difficult decision of dumping a large quantity of harvested tomatoes in May this year due to low prices. Undeterred by the setback, he continued to exhibit unwavering determination and work tirelessly on his 12-acre farm to cultivate tomatoes. Now, amid the skyrocketing prices of tomatoes, Gaykar's hard work has paid off handsomely, transforming him into a millionaire as he claimed to have earned ₹3 crore through the sale of his crop yield between June 11 and July 18. Talking to PTI, Gaykar said during the period, he sold 18,000 crates of tomatoes (each crate comprising 20 kg of tomatoes) at the Agricultural Produce Market Committee (APMC) at Narayangaon in Junnar tehsil for ₹3 crore. He aims to earn another ₹50 lakh by selling the remainder of the produce, which is roughly 4,000 crates. The total input cost of cultivation, including transportation, was ₹40 lakh, he said. "I have an 18-acre farm where I cultivate tomatoes on 12 acres. I have sold 18,000 crates since June 11 and have so far earned ₹3 crore," said Gaykar. On June 11, his produce fetched a price of ₹770 per crate (₹37-38 per kg), and on July 18, he sold tomatoes at ₹2,200 per crate (₹110 per kg ). Gaykar, who is now happy to earn handsome dividends on the produce, recalled how he had to dump a large quantity of harvested tomatoes just two months back due to low prices. "This is the best of times for the tomato growers, but we have witnessed worst times also. In the month of May, I grew tomatoes on one-acre land, but had to throw away large quantities of the produce as the prices were very low. I had thrown the produce away as the per crate rate was just ₹50, which means ₹2.50 per kg," he said. Gaykar also said that in 2021, he incurred losses worth ₹15-16 lakh and last year also he just earned a narrow profit margin. "When I was throwing the tomatoes in May this year, this yield on the 12-acre land was under cultivation. Undeterred by the setback, I kept up my resilience and commitment towards farming and continued spending on the cultivation of tomatoes," he said. "I took good care of the produce even in the scorching May heat. Due to the high temperatures, tomato cultivation in other parts took a beating, but farmers like me benefitted as we continued to work hard," he said. Another farmer Raju Mahale, who earned more than ₹20 lakh by selling 2,500 crates in the current season, said he was also jittery about tomato cultivation after May as the per acre input cost was around ₹3.5 lakh. But, he went ahead with the cultivation, receiving good dividends now. Narayangaon agriculture market trader Akshay Solat, who purchased Gaykar's produce, said as there was a boom in the market again, he purchased tomatoes at ₹ 2,400 per crate. "I have been in this trading business for the last 15 years, but I have never seen such a boom in the tomato market. Once there was a rate of ₹ 1,500 to ₹ 1,600 per crate, but such price-wise consistency in the tomato market was never witnessed," he said. He, however, said only a handful of farmers have earned handsomely this season, including farmers from Pachghar, Otur, Ambegavhan, and Rokdi. Narayangaon APMC chief Sanjay Kale said generally in this season, their market receives 1.5 lakh to 2 lakh crates of tomatoes per day, but in the current season, it has dropped to 30,000 to 35,000 crates per day. "In the last two years, farmers incurred huge losses and could not recover their production costs, which resulted in a drop in production. During the summers, the tomato crop suffered from diseases, forcing the farmers to abandon their tomato farms," he said. "I generally get tomatoes from across the state, but because of the aforementioned reasons, the market committee is receiving the produce from Junnar and Ambegaon tehsils. These are the reasons why tomato prices have skyrocketed and demand has soared," he said. Kale said since the production of tomatoes has taken a beating in north India, traders from other states come to the market in Narayangaon to purchase the key kitchen staple. The National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (NAFED) last week started selling tomatoes at a discounted rate of ₹ 90 per kg in Delhi-NCR and Patna in a bid to provide relief to consumers amid the high prices. The Centre had directed the two cooperatives to procure tomatoes from Andhra Pradesh, Karnataka and Maharashtra for distribution in major consumption centres, where retail prices have recorded maximum increase in the last month. "Though the NCCF and NAFED started selling tomatoes at the discounted rate, the government is buying the produce at ₹ 110 or ₹ 120 per kg, so farmers will continue to get what they are getting now," Kale said.

Sky-high tomato prices make Pune farmer a millionaire as he earns ₹3 cr in one month

<ul class="summary-list"><li>Burger King in India has taken tomatoes off the menu due to food inflation, per <a href="https://www.reuters.com/business/retail-consumer/burger-king-says-tomatoes-vacation-india-battles-food-inflation-2023-08-16/" target="_blank" rel="noopener">Reuters</a>.</li><li>Signs outside two outlets in the country explained that it's because tomatoes "need a vacation" too.</li></ul>Burger King in India has stopped serving tomatoes as a result of food inflation in the country, which is at its highest this week since January 2020, per <a href="https://www.reuters.com/business/retail-consumer/burger-king-says-tomatoes-vacation-india-battles-food-inflation-2023-08-16/" target="_blank" rel="noopener">Reuters</a>.But two of the fast-food chain's outlets in India have decided to put a lighthearted spin on explaining the ingredient's absence."Even tomatoes need a vacation... we are unable to add tomatoes to our food," signs posted outside these two outlets said, per Reuters. Burger King, which has over 400 outlets in India, is the latest fast-food giant in the country to remove the ingredient from their menus, per Reuters.McDonald's in India stopped serving tomatoes in July due to quality concerns as a result of shortages in supply, per <a href="https://www.cnbctv18.com/business/companies/mcdonalds-drops-tomatoes-from-menu-items-temporary-issue-prices-shortage-17150031.htm">CNBC TV18</a>.Following McDonald's, Subway in India also dropped tomatoes from its menu that same month, the <a href="https://timesofindia.indiatimes.com/business/india-business/after-mcdonalds-some-subway-outlets-drop-tomatoes-from-sandwiches-and-other-dishes/articleshow/102037408.cms?from=mdr">Times of India</a> reported.Like McDonald's, notices outside a few Subway outlets in New Delhi attributed the unavailability of tomatoes due to quality issues."Despite our best efforts, we are not able to get adequate quantities of tomatoes which pass our world class stringent quality checks. Hence for the time being we are forced to serve you products without tomatoes," a notice at a Subway outlet at the New Delhi airport read, per the Times of India. The prices of tomatoes have increased drastically in recent months.The daily average retail price per kilogram of tomatoes was 119.16 rupees, or $1.43, on July 16, up from 34.66 rupees, or $0.42, almost one year ago on August 16, 2022, per <a href="https://fcainfoweb.nic.in/Reports/DB/Dailyprices.aspx" target="_blank" rel="noopener">data</a> from India's Department of Consumer Affairs.In an effort to manage the tomato crisis, the Indian government has organized a fleet of vans to sell the crop at cheaper rates across the country, per Reuters.The National Cooperative Consumer's Federation of India <a href="https://twitter.com/Nccf_India/status/1682614049186500609?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1682614049186500609%7Ctwgr%5Efced103d5a6719e5259b9147dd7658cfe1dcd60d%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.reuters.com%2Fworld%2Findia%2Fsome-subway-india-outlets-drop-tomatoes-citing-poor-quality-amid-price-surge-2023-07-22%2F">posted a video on X</a> — formerly known as Twitter — depicting the scene at one of these initiatives. In the video, many people can be seen queuing to buy tomatoes from a truck. Ironically, the current tomato shortage in India comes right after a bumper harvest that caused prices to crash, per <a href="https://www.nytimes.com/2023/07/21/world/asia/india-tomatoes-shortages-climate-change.html">The New York Times</a>.In May, some farmers even resorted to dumping tomatoes on the road because they were unable to sell them, per the <a href="https://timesofindia.indiatimes.com/city/nashik/farmers-dump-tomatoes-on-roads-as-prices-crash/articleshow/100367606.cms?from=mdr" target="_blank" rel="noopener">Times of India</a>.Burger King did not immediately respond to a request for comment from Insider.

Burger King in India says tomatoes 'need a vacation' too — they have been removed from the menu due to inflation

<ul class="summary-list"><li><keyword id="20228059" type="General" weightage="20" keywordseo="Costco" source="keywords" meta.keywordsubtype="org" meta.entityname="Costco" meta.hostid="261" meta.entityid="Costco">Costco</keyword> shoppers are still avoiding splurging on expensive items.</li><li>The average ticket value was down 4.5% in the US, which its CFO attributed to lower sales of higher-value non-food discretionary items.</li></ul><a target="_blank" href="https://www.businessinsider.com/costco-offer-virtual-doctors-visits-to-members-2023-9">Costco</a> shoppers are still cutting back on <keyword id="23596976" type="General" weightage="20" keywordseo="big-ticket-items" source="keywords">big-ticket items</keyword> even as <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword> cools, execs said at the company's earnings call Tuesday. The average value of each transaction at the wholesaler was down 4.5% year-over-year in the US, which CFO Richard Galanti said was "impacted in large part from weakness in bigger ticket non-foods discretionary items." In the previous quarter, the average ticket size had been down 3.5% compared to the same period in 2022. "It makes sense to us on big-ticket discretionary that's where you'd see the biggest weakness," Galanti told investors. The number of US transactions, however, had increased, he said. <keyword id="20940440" type="General" weightage="20" keywordseo="online-sales" source="keywords">Online sales</keyword> of items in the major big-ticket discretionary categories which make up more than half of Costco's e-commerce revenues — home furnishings, small electrics, jewelry, and hardware — were down 5% year-over-year in the quarter, Galanti said, without giving further details of which items had seen the biggest drop in sales. This is a massive improvement on the 20% year-over-year drop in online sales in these categories that Costco had posted the previous quarter. During that quarter, these items made up 55% of e-commerce sales but just 8% of in-warehouse sales, Galanti said during its earnings call in May. Galanti said that sales of gaming products, tablets, and some Apple products were up, while appliance sales online had risen 30% year-over-year. Audio product sales were up "a little" and TV sales were up but the average price point had come down, he said. Notebook and computer sales hadn't risen, but Galanti didn't say whether they were flat or had fallen. Customers aren't necessarily as receptive to discounts as they used to be. Galanti said that when Costco puts temporary price discounts on items, sales do increase, "but it's not as predictable I would say as it used to be." Galanti said that inflation for fresh food and sundries was "flat-to-down a little" while for some consumer-packaged goods and sundries it was "up a little." The cost of food products for at-home consumption rose just 3% in the year to August, according to the <a target="_blank" href="https://www.bls.gov/news.release/cpi.t02.htm">consumer price index</a>, the Bureau of Labor Statistics' measure of consumer inflation. From July to August, the average price of some items including tomatoes, eggs, cheese, rice, cereal, and bread declined, the data shows. Galanti told investors that <a target="_blank" href="https://www.businessinsider.com/costco-still-not-raising-its-membership-fees-2023-9">Costco wasn't raising membership fees</a> for the time being. The retailer made 1.9% of its revenue in the year through September 3 through <keyword id="23161100" type="General" weightage="20" keywordseo="membership-fees" source="keywords">membership fees</keyword>, but this accounted for the majority of its profit. Overall Costco posted a 6.7% year-over-year jump in global net annual sales to $237.7 billion, alongside $1.5 billion in membership fees. Net income rose 7.7% to $6.3 billion.

Costco shoppers are continuing to cut back on big-ticket items, even as inflation falls, as Americans put off buying jewelry, laptops, and furniture

<ul><li>The <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> is likely to maintain status quo on policy rates for the fourth time in a row month, say experts.</li><li>This is in view of the stubbornly high retail <keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword>, elevated crude oil prices and more.</li><li>The <keyword id="6357126" type="General" weightage="20" keywordseo="monetary-policy" source="Orion">Monetary Policy</keyword> Committee (MPC) meeting is scheduled for October 4-6, 2023.</li></ul> The Reserve Bank is likely to maintain status quo on policy rates for the fourth time in a row at its bi-monthly monetary policy review meeting early next month, as retail inflation continues to remain high and the US Federal Reserve has decided to keep a hawkish stance for some more time, according to experts. The Reserve Bank had raised the benchmark repo rate to 6.5 per cent on February 8, 2023 and since then it has retained the rates at the same level in view of the stubbornly high retail inflation and certain global factors including elevated crude oil prices in the international market. The Reserve Bank Governor-headed six-member Monetary Policy Committee (MPC) meeting is scheduled for October 4-6, 2023. The last meeting of the MPC, the highest rating-setting panel, was in August. "We do expect the RBI to hold on to a status quo position this time as inflation is still high and liquidity tight. In fact, going by RBI forecast on inflation, it would be above 5 per cent in Q3 too, which will ensure that the status quo prevails for the calendar year for sure and probably Q4 too," said Madan Sabnavis, Chief Economist, Bank of Baroda. Sabnavis further said there are uncertainties relating to Kharif crop, especially on pulses, which can increase prices. "The comfort is that there is less concern on growth which is on target," he added. Although the <keyword id="134096" type="General" weightage="20" keywordseo="consumer-price-index" source="Orion">Consumer Price Index</keyword> (CPI)-based retail inflation eased a bit to 6.83 per cent in August from 7.44 per cent in the preceding month in July, it remained above the Reserve Bank's comfort level of 6 per cent. It may be mentioned that the government has mandated the RBI to keep inflation at 4 per cent with 2 per cent margin on either side. Aditi Nayar, Chief Economist, ICRA Limited said the headline CPI inflation is expected to ease to 5.3-5.5 per cent in September 2023 from 6.8 per cent in August 2023, benefitting from the halving of the average price of tomatoes as well as a favourable base. "... We expect the CPI inflation to ease to 5.6 per cent in Q3 FY2024 and further to 5.1 per cent in Q4 FY2024, amid upside risks to food inflation on account of the impact of uneven and sub-par monsoons and low reservoir levels on Kharif yields and Rabi sowing, respectively," she said. Nayar said ICRA expects the MPC to remain on hold in October 2023 policy, while continuing to demonstrate caution amid a cloudy outlook for food inflation and elevated crude oil prices. The Reserve Bank has projected CPI inflation at 5.4 per cent for 2023-24, with Q2 at 6.2 per cent, Q3 at 5.7 per cent and Q4 at 5.2 per cent, with risks evenly balanced. CPI inflation for Q1, 2024-25 is projected at 5.2 per cent. On his expectations from the next bi-monthly monetary policy, Sanjay Bhutani, Director, Medical Technology Association of India (MTaI) said the RBI has gone along with the market sentiment of retaining the benchmark interest rate at 6.5 per cent for quite some time now. However, it's time for the central bank to contemplate a reduction of the interest rate with the objective of boosting growth, he said. "...if that is not possible in view of high retail inflation and the hawkish stance of the Federal Reserve, the medical technology sector, which is reeling under the burden of high debt, does expect the RBI to continue with the pause and at the same time provide some firm indication of easing rates in the near future," Bhutani opined. Sandeep Bagla, CEO, Trust Mutual Fund was of the opinion that the environment for <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword> has worsened considerably from MPC's last policy review in August. In the US and in India, the economy has shown resilient growth, and inflation numbers have risen beyond comfort levels. "While food prices have softened, crude oil prices have climbed up, thereby raising inflationary expectations as evidenced by sharp rise in US treasury yields. The MPC will consider all these factors and maintain status quo on repo rates, as headline inflation is expected to come down in the coming months," he said. The Reserve Bank mainly factors in the CPI-based inflation while arriving at its bi-monthly monetary policy. The borrowing cost which started rising in May last year has stabilised with RBI keeping the repo rate unchanged at 6.5 per cent since February, when it was raised from 6.25 per cent. Later in the next three bi-monthly policy reviews in April, June and August the benchmark rate was retained. The MPC consists of three external members and three officials of the RBI. The external members on the panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma. Besides Governor Das, the other RBI officials in MPC are Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor).

As inflation continues to remain high, RBI likely to keep interest rates unchanged

<ul class="summary-list"><li>All-you-can-eat buffets are back after closing dining rooms or going bankrupt during the pandemic.</li><li>Golden Corral, Cicis, and Pizza Ranch are welcoming more customers, <a href="https://www.cnn.com/2023/05/05/business/golden-corral-cicis-buffets/index.html" target="_blank" rel="noopener">CNN reported.</a></li></ul>All-you-can eat buffets are returning three years after the pandemic slowed down sales for some and put others out of business.Foot traffic at Golden Corral, Cicis, and Pizza Ranch, the US's top three buffet chains, rose 125% in March compared to January 2021, according to data from <a href="https://www.cnn.com/2023/05/05/business/golden-corral-cicis-buffets/index.html" target="_blank" rel="noopener">Placer.ai reported by CNN.</a>Many buffets had to close or reduce capacity during the early months of the pandemic. Now, they're becoming destinations again, with society mostly open and inflation forcing consumers to stretch the money that they spend on eating out.Golden Corral, which has roughly 400 locations in the US, grew its 2022 sales 14% over 2019, the company <a href="https://www.nrn.com/operations/golden-corral-proving-why-buffet-isn-t-dead-post-pandemic-world" target="_blank" rel="noopener">told Nation's Restaurant News in April.</a> The <a href="https://www.businessinsider.com/golden-corrals-to-go-buffet-was-busy-but-felt-risky-2021-8">chain started offering take-out </a>meals and digital ordering in 2020 as many consumers stayed home.But CEO Lance Trenary told NRN that when it asked customers about their interest in the in-person, all-you-can-eat option, "it was just overwhelming that people wanted the buffet back."Now, with restaurant prices rising fast thanks to inflation, all-you-can-eat buffets are attracting diners looking for a good deal. "People are always telling us, 'We appreciate your value,' and we kept the lid on pricing and worked hard to maintain that value without cutting quality or variety of buffet options," Trenary said. Golden Corral is one of the buffet chains that survived the pandemic. Some, like the company behind Furr's Fresh Buffet and Old Country Buffet, filed for bankruptcy and permanently closed locations.But others are making a comeback. Salad buffet chain Sweet Tomatoes, which also operated restaurants under the Souplantation name, filed for Chapter 7 bankruptcy and closed all of its locations in 2020 as visits cratered. But at least one Sweet Tomatoes location appears to be reopening in Tuscon, Arizona, <a href="https://www.restaurantbusinessonline.com/operations/pandemic-victim-sweet-tomatoes-planning-comeback#" target="_blank" rel="noopener">Restaurant Business reported in March.</a>And Texas-based Cicis, which filed for bankruptcy in 2021, grew sales by 10.4% in 2022 over 2019, President Jeff Hetsel <a href="https://www.franchisetimes.com/franchise_news/comeback-for-cicis-pizza-after-two-years-under-new-owners/article_1eb5a524-a1b8-11ed-8cab-fb3c83c07c8b.html" target="_blank" rel="noopener">told Franchise Times in January.</a> The chain is also adding bigger game rooms to its restaurants as patrons come back in-person, he said.Buffets are back, but whether or not to <a href="https://www.distractify.com/p/woman-says-to-tip-buffet-servers" target="_blank" rel="noopener">tip the staff at these restaurants is up for debate. </a>Do you work at a buffet and have a story to share? Please contact Alex Bitter at <a href="mailto:abitter@insider.com" target="_blank" rel="noopener noreferrer">abitter@insider.com</a> or via text/encrypted messaging app Signal at (808) 854-4501.

The buffet is back. Thank you, inflation.

<ul><li>India’s inflation outlook has changed in the last few months due to rising vegetable prices along with a few pulses and grains.</li><li>While MPC is expected to increase its inflation projections it might not rush into a rate hike in August, economists say.</li><li>While central banks of developed economies are still hiking interest rates, developed economies are actively decoupling. </li></ul>Even those who aren’t keeping a keen eye on inflation would have noticed the surge in food prices in the last few months and their effect on Indian household budgets. However, economists believe that in the upcoming August meeting, <keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword>’s Monetary Policy Committee (MPC) is likely to keep base interest rates unchanged. In the last few months, there have been many inflation shocks, especially with regards to rising tomato prices along with that of a few pulses and grains. According to a report by Crisil, the cost of a vegetarian thali went up by 28% and non-vegetarian thalis went up by 11% in July, as compared to June. “Over the past month, surging food prices have changed India’s inflation outlook. While vegetable prices should eventually cool, pulse and cereal prices could prove stickier. We now expect headline inflation to rise to 6-6.5% in July/August, from 4.8% in June, before settling in a 5-6% range for the rest of FY24,” said Nomura. ‘Policy settings on hold’ Though prices are skyrocketing, most economists believe that the food inflation is transitory or seasonal. Moreso, core inflation has been steady and wholesale price inflation too has been cooling off, providing comfort. All these factors indicate that the MPC will keep interest rates paused like it did in the last two meetings. “We expect the MPC to keep the repo rate unchanged at 6.5% at the 10 August meeting, flagging resilient economic growth, and anchored underlying inflation as reasons to monitor incoming economic data, while keeping policy settings on hold,” said Rahul Bajoria, MD &amp; head of EM Asia (ex-China) economics at Barclays. The RBI may not want to hurry to cut rates, says Deepak Jasani, head of retail research at HDFC Securities. “Inflation could remain elevated in July and August and if the El Nino pattern plays out in the latter half of the monsoon, this era of high inflation could continue till the end of this calendar. Oil prices globally have also started to inch up. However, we do not expect the RBI to jump the gun and resume rate hikes in its August meeting,” he added. The MPC is also expected to maintain its status quo on its "withdrawal of accommodation" stance as well. However, economists do expect the RBI to alter its inflation projections for the year, while keeping growth projections intact. “There are no new major headwinds to growth projections. Stronger than expected momentum in domestic investments resulted in major international agencies like IMF revising up India's growth projections to 6.1% from 5.9% earlier this year. We expect RBI to maintain its growth projections at 6.5% for FY24,” said a report by CARE Edge. Mixed messages from global markets While most nations across the globe had started increasing interest rates around May last year to tackle the global inflation problem — they have been coming off it in a varied manner. The world’s largest economy, the US, seems to be in the midst of more interest rate hikes. The US Fed hiked its policy rate by 25 bps last month, and experts expect a few more going ahead. The Bank of England and European Central Bank are still hiking policy rates but a few central banks of emerging markets like China and Brazil have already started their rate-cutting journey. “Recent developments show early signs of a monetary policy decoupling globally influenced by different macroeconomic conditions,” says CARE Edge. India however can go either way as the RBI Governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> has repeatedly said that it was a pause not a pivot in the earlier MPC meeting outcome. Most economists in India too had hoped for rate cuts in the <a href="https://www.businessinsider.in/finance/news/with-inflation-cooling-rbi-may-slash-interest-rates-by-50-bps-this-financial-year/articleshow/100531780.cms">second half of the current financial year</a>, but quickly tempered their hopes after the change in inflation dynamics. Along with a stable currency, large FPI inflows and narrowing trade deficit there are uncertainties like an erratic monsoon and El Nino conditions which may yet play out. In such a scenario, the Shaktikanta Das led panel will have to balance the growth momentum and yet stick to its mandated inflation watch. Tricky, to say the least. MPC decisions in 2023 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Meeting </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Base rates </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">June meet </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rates kept unchanged </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April meet </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rates kept unchanged </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">February meet </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rates hikes by 25 basis points to 6.5% </td></tr></tbody></table>

You Searched For "tomato inflation" and got 8 results

High food prices raise concerns but improved monsoon offers hope for RBI: SBI report

ANI

Inflation to inch higher still? Incessant rains will add to woes, warn economists

Katya Naidu

Sky-high tomato prices make Pune farmer a millionaire as he earns ₹3 cr in one month

PTI

Burger King in India says tomatoes 'need a vacation' too — they have been removed from the menu due to inflation

Amanda Goh

Costco shoppers are continuing to cut back on big-ticket items, even as inflation falls, as Americans put off buying jewelry, laptops, and furniture

Grace Dean

As inflation continues to remain high, RBI likely to keep interest rates unchanged

PTI

The buffet is back. Thank you, inflation.

Alex Bitter

RBI MPC expected to ‘pause and watch’ how inflation plays out

Katya Naidu

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