Agri Buzz: Sustained deflation in vegetable and pulses prices pulling food prices lower

Department of Economic Affairs or DEA stated in a latest monthly update that India?s food inflation continued its downward trajectory through Q1 of FY2025-26, entering negative territory at - 1.1 per cent in June 2025, an event occurring after February 2019. A key driver of this trend was the sustained deflation in prices of vegetables and pulses ? these items together represent around 8.4 per cent of the overall consumer price inflation (CPI) and 21 per cent of the consumer food price index. In June 2025, these categories remained in the deflationary zone. This steep drop compounded by a high base effect, led to an overall decline in food inflation. Supporting this trend was a 4.1 per cent rise in pulse production in 2024-25, which improved supply and stabilised prices. Meanwhile, inflation for cereals moderated to 3.7 per cent, whereas oils & fats continued with double-digit inflation.

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