News Capsule: Food Inflation Likely to Remain Range-Bound in 2026
29-Dec-2025 09:14 AM
News Capsule: Food Inflation Likely to Remain Range-Bound in 2026
★ Food inflation is expected to stay under control in 2026. After peaking at 10.87% in October 2024, food inflation fell sharply to (-)3.91% in November 2025, mainly due to softer prices of vegetables, cereals, pulses and spices.
★ The supply situation remains comfortable, with government agencies holding record grain stocks. As of January 2026, total foodgrain stocks with the Food Corporation of India and state agencies stand at about 86 million tonnes, far above the required buffer levels. Rice stocks are also significantly higher than buffer norms.
★ Wheat sowing during the ongoing rabi season has been strong, supporting expectations of good production and adequate availability next year. Due to surplus supplies, the government’s open market wheat sales have seen muted demand.
★ According to the Roller Flour Millers’ Federation of India, early field reports indicate favourable weather and good crop conditions for wheat. However, concerns remain that high carrying costs could discourage private stocking during the next harvest season.