Food inflation to remain high for next few months, RBI may raise 25 bps in Dec: ICICI Bank

Detailed summary

Food inflation is expected to remain high over the next few months, with the Reserve Bank of India likely to raise interest rates by 25 basis points in December to cool retail inflation, highlighted a report by ICICI Bank.

New Delhi [India], November 13 (ANI): Food inflation is expected to remain high over the next few months, with the Reserve Bank of India likely to raise interest rates by 25 basis points in December to cool retail inflation, a report by ICICI Bank highlighted.The report said the outlook for food inflation will largely depend on the upcoming rabi crop, as the kharif season has witnessed a shortfall. Lower reservoir levels and soil moisture conditions could also affect rabi crop output, creating upside risks to food prices.It said cereals, pulses, coarse cereals and edible oils are among the food items that could face upward price pressure.

Inflationary pressure is also becoming more broad-based. Around 53% of the weighted Consumer Price Index basket is now witnessing inflation above 4%, compared with 20% in March 2026.The report further highlighted that nearly 70% of food items recorded inflation above 4%, with upward pressure visible in pulses, cereals and edible oils, as well as meat, milk and eggs.Core inflation, excluding gold and silver, rose to 3.8% year-on-year in October from 3.2% in September.

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