RBI Says TOP Price Pressure Continuing in July 

Food price pressures remained firm in July, driven by a sharp increase in onion prices, while cereals, pulses and edible oils also recorded month-on-month increases, according to high-frequency price data published in the Reserve Bank of India's July Bulletin.

Onion prices rose 23.9% on-month during July 1-20, the steepest increase among vegetables tracked by the central bank, according to the bulletin's "Broad based Food Price Pressures in July" chart. Tomato prices increased 1.9%, while potato prices rose 5.9%, indicating a pickup in vegetable prices during the month.

Among cereals, rice prices rose 1.8% month-on-month, and wheat prices increased 0.6%. Tur/Arhar dal prices edged up 0.1% and gram dal gained 0.5%, while moong dal prices declined 0.2%. Edible oil prices also remained firm, led by mustard oil, which rose 1.3%, followed by sunflower oil at 1.0% and palm oil at 0.8%.

The data relate to average retail prices during July 1-20 compared with the corresponding period of the previous month.

Despite the uptick in food prices, the RBI said the impact of uneven southwest monsoon rainfall on food inflation could be mitigated by comfortable foodgrain stocks.

The central bank noted that wheat procurement for the 2026-27 rabi marketing season had exceeded the government's target, rice procurement was higher than a year ago, and public stocks of both grains remained well above prescribed buffer norms. It also said agriculture's dependence on monsoon rainfall has gradually declined because of expanding irrigation coverage and a lower share of kharif crops in total foodgrain production.