Retail food inflation remained in the negative zone for the sixth consecutive month in November when it came in at (-) 3.91%, largely driven by base effect and subdued prices of vegetables, cereals, pulses, meat, eggs and spices. However, it inched up sequentially from -5.02% in October, as prices of many food items firmed up.
Food inflation was in the negative zone in September (-5.02%), August (-0.64%), July (-1.76%) and June (-1.01%).
The consumer food price index (CFPI) rose by 0.54% sequentially in November compared to October. In November last year, the food inflation rate was at 9.04%.
The inflation in the vegetable category was (-) 22.2% last month compared to (-) 27.57% in October. However, edible oil and fruit inflation remained on the higher side at 7.87% and 6.87 % respectively last month.
Deflation Driven by Vegetables and Pulses
Madan Sabnavis, chief economist, Bank of Baroda said “the factors driving inflation downwards have been the base effect and decline in prices of vegetables and pulses. In particular, potatoes, onions and tomatoes have witnessed decline leading to food inflation falling by 3.9%,”.
Inflation in mustard oil and refined oil were 8.77% and 5.69% respectively last month on year because of the rise in global prices. India imports about 58% of its edible oil consumption.
Overall cereal inflation in November eased further to 0.1% and had been in single digits for the past several months because of softening price rise in rice. Rice inflation last month declined by 1.11% on year.
Inflation in wheat last month eased further to 0.33% against a price rise of 2.04% in October. Inflation in pulses declined by 15.86% last month for 10th successive months on the prospects of robust kharif harvest as well as encouraging rabi sowing and adequate carry forward stock held with the government, trade and other private entities. Inflation in pulses was as high as 113% in August 2024.
The price rise in arhar continues to be in the negative zone since January, 2025 at – 29.49% last month because of a high base effect as fall in prices due to a record harvest as well as imports.
Sequential Price Rise in Key Segments
Aditi Nayar, chief economist, ICRA said that in the fruit and beverage segment, as many as 8 of the 12 sub-segments witnessed a hardening in their YoY prints in November 2025 as compared to October 2025. “Nevertheless, vegetables and pulses remained in the deflationary zone for the tenth consecutive month, while spices sustained in this territory for the seventeenth month in a row,” Nayar said.
Inflation in the meat and fish category came in at 2.5% last month. Chicken inflation was only 0.36% in November. Egg prices rose by a modest 3.77% last month on year. Inflation in spices continues to decline since September last year and stood at 2.89% in November of last year.
Jeera prices declined by 14.22% last month.