Economists warn that the recent surge in onion prices may lead to inflation nearing 6% in the last two months of 2024. In November, onion prices shot up by nearly 75% compared to the previous month.
While tomato prices are expected to help control inflation in October, the situation could worsen in the coming months. Onions hold a 0.64% weight in the inflation basket, while tomatoes account for a lower 0.57%.
Despite government efforts, prices are yet to stabilize. Food inflation, which averaged 6.6% in September, may remain high due to the stress on onion prices.