New Delhi [India], December 14 (ANI): Food prices in India continued to remain in deflationary territory in November 2025, even as overall retail inflation edged up, reflecting a broader trend of soft price pressures across the economy.
According to a report by Union Bank of India, food inflation stood at negative 2.78 per cent in November, improving from a record low of negative 3.7 per cent in October. At the same time, India’s Consumer Price Index (CPI) rose to 0.71 per cent in November, up from 0.25 per cent in October, data released by the Ministry of Statistics and Programme Implementation showed. Despite the increase, headline inflation remained below the 1 per cent mark for the second consecutive month.
The Union Bank report noted that the November CPI print of 0.71 per cent matched its earlier estimate, underscoring the persistence of subdued inflation. Core inflation eased marginally to 4.34 per cent from 4.41 per cent in October, while fuel inflation rose to 2.32 per cent from 1.98 per cent. CPI excluding vegetables declined to 2.86 per cent from 2.99 per cent in the previous month. The report added that excluding the impact of a sharp rise in gold prices, CPI would stand at negative 0.12 per cent, highlighting extremely soft underlying price pressures.
Describing the current macroeconomic environment, the report said this represents a “Goldilocks” moment for the Indian economy, marked by resilient growth alongside low inflation. It pointed out that the negative food inflation reading continues to be influenced by a high base of 8.2 per cent from November 2024.
Official data from the ministry showed that the rise in retail inflation in November was driven mainly by higher prices of vegetables, eggs, meat and fish, spices, and fuel and light. While food inflation remained in the negative zone, the contraction narrowed. The Consumer Food Price Index (CFPI) recorded food inflation at negative 3.91 per cent year-on-year in November, improving by 111 basis points from October.
Rural food inflation stood at negative 4.05 per cent, compared with negative 4.85 per cent in October, while urban food inflation improved to negative 3.60 per cent from negative 5.18 per cent. Rural headline inflation rose to 0.10 per cent in November from negative 0.25 per cent in October. Urban areas saw a sharper increase, with headline inflation climbing to 1.40 per cent from 0.88 per cent in the previous month.
The Union Bank report highlighted mixed trends within food categories. Food prices rose on a month-on-month basis across most segments in November, except cereals and sugar. Vegetable inflation increased month-on-month to 2.55 per cent from negative 0.28 per cent in October. However, due to a very high base of 29.4 per cent last year, year-on-year vegetable inflation remained sharply negative at negative 22.2 per cent. Pulses inflation rose month-on-month for the first time in 14 months, though it stayed negative at negative 15.86 per cent on a yearly basis. Cereals inflation slipped to a fresh 50-month low of 0.10 per cent, down from 0.92 per cent in October.
Edible oil inflation continued to moderate, easing to 7.8 per cent in November from a peak of 21.24 per cent in August. Fruits, sugar and non-alcoholic beverages recorded monthly declines, while most other food items were flat or slightly higher. The vegetables index increased from 212 in October to 217 in November, again underscoring the strong influence vegetables have on headline inflation.
On the non-food side, housing inflation remained steady at 2.95 per cent in November, virtually unchanged from October, while education inflation eased to 3.38 per cent from 3.54 per cent. Health inflation moderated to 3.60 per cent from 3.81 per cent, and transport and communication inflation edged down marginally to 0.88 per cent.
Looking ahead, the Union Bank of India report expects food inflation to remain mostly negative during the third quarter of FY26, supported by a high base effect and normal winter cooling of prices. However, it cautioned that upside risks persist in the event of unseasonal winter rains or supply disruptions. (ANI)
671 words, 4 minutes read time.
About The Author
