Urban centres have suffered more than rural areas from the rising inflation of daily food items, such as cereals, pulses and vegetables, according to industry chamber Assocham.
The Associated Chambers of Commerce and Industry of India said its analysis of inflation data showed that in May, the consumer price index (CPI) showed that price rise of cereals was 21.29 per cent in urban centres over the last year, while rural CPI for cereals was only 14.74 per cent.
Similarly, vegetable prices rose by 14.52 per cent in cities whereas they rose by 7.62 per cent in rural areas.
The chamber analysis also noted that items such as fruits and edible oil were more expensive for people living in rural areas. The CPI for oils and fats was 7.61 per cent for rural areas compared with 1.34 per cent in cities. Fruits and sugar also displayed higher inflation in rural areas.
The chamber said operational inefficiencies in the supply chain was one of the main reasons for the deviation in prices in rural and urban areas.
D.S. Rawat, Secretary General, Assocham, said it was a matter of concern that there was a huge gap between inflation at the wholesale level and at the retail level.
“This calls for de-layering of supply chains. It is a myth that de-layering will result in job losses. It would rather improve efficiencies, which will create more opportunities through increase in retail trade that itself will have a huge positive spin-off,” he added.