Pulses continue to race on the rate list at your neighbourhood kirana store despite wholesale prices falling sharply in the past six months. This skewed pattern, of diverging consumer and wholesale prices, has become a trend in India’s overall inflation rates too. Simply put, arhar prices have dropped 30% in six months in Delhi, data show, while retail prices have fallen only 16%. Transmission lag refers to the time it takes price in the wholesale market to reflect in retail markets. “Prices have been falling very frequently at the stores with the decrease in wholesale prices.

Source: Hindustan Times September 05, 2016 01:52 UTC