While the contribution from proteins has gone down somewhat in 2011–12, the pressure from fruits and vegetables have sustained. Given the significance of proteins and fruits and vegetables in food inflation in the recent episode, let us look at the contribution of some major items in the protein category.
Ensuring that banks exercise good risk management, of course, is an important job for bank supervisors, which includes overseeing their ability to properly capture the risks in the markets in which they operate, as well as their ability to conduct appropriate stress testing to explore potential consequences of different types of market distress.