New Delhi [India], December 14 (ANI): Food prices in India remained in deflation during November 2025, registering a negative 2.78 per cent, slightly higher than October’s record low of negative 3.7 per cent, even as overall consumer inflation edged up, according to a report by the Union Bank of India.
The report noted that the Consumer Price Index (CPI) for November stood at 0.71 per cent, up from 0.25 per cent in October, but still below the 1 per cent mark for the second consecutive month. Core inflation eased slightly 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 fell to 2.86 per cent, compared with 2.99 per cent in the previous month. Adjusting for the impact of rising gold prices, CPI effectively stood at negative 0.12 per cent, reflecting very soft price pressures.
The report described the situation as a “Goldilocks” moment for the Indian economy, combining resilient growth with low inflation. The negative food inflation reading was influenced by a high base of 8.2 per cent from November 2024.
Food prices increased month-on-month across most categories in November, except for cereals and sugar. Early data from the Department of Consumer Affairs indicate rising food prices in December. Vegetable inflation rose to 2.55 per cent month-on-month, compared with a negative 0.28 per cent in October, but year-on-year vegetable inflation remained sharply negative at -22.2 per cent due to a high base of 29.4 per cent last year.
Pulses inflation rose month-on-month for the first time in 14 months, though year-on-year inflation remained negative at -15.86 per cent. Cereals inflation fell to a 50-month low of 0.10 per cent, down from 0.92 per cent in October. Other food categories such as fruits, sugar, and non-alcoholic beverages saw declines or remained largely flat, while edible oil inflation, which had peaked at 21.24 per cent in August, slowed to 7.8 per cent.
The Union Bank of India report expects food inflation to remain mostly negative in the third quarter of FY26 due to the high base effect and normal winter price cooling. However, the report cautions that unseasonal winter rains or supply disruptions could pose upside risks.
About The Author
