Overview
- Headline CPI fell to 0.25% year-on-year in October, the lowest reading in the current series, after a revised 1.44% in September, according to NSO data.
- Food inflation sank to -5.02%, with vegetables down 27.57% and onions off 54.3%, making food the biggest drag on the index.
- Core inflation, excluding food and fuel, firmed to about 4.49%, underscoring persistent non-food price pressures.
- The RBI projects FY26 headline inflation at 2.6% and says the benign backdrop provides room for policy easing, while cautioning about geopolitical and weather risks.
- An assessment by Union Bank of India indicates wholesale inflation likely turned negative in October at around -1.42%, led by softer food and continued fuel deflation.