New Delhi [India], November 16 (ANI): Above-normal monsoon rains and improved sowing conditions are expected to support a benign food inflation trajectory in the second half of the Financial Year (FY) 2026. However, an adverse base is likely to push food inflation higher next year (FY27), according to ICICI Bank's Global Markets sectoral update on the outlook for wholesale inflation.

A base effect refers to how this year's inflation appears higher or lower simply because of unusually high or low prices in the same period last year.

"Higher rainfall and sowing bode well for the outlook in H2FY26, but an adverse base should push food inflation higher next year (FY27)," the report added.

The outlook comes amid India's wholesale inflation easing to its lowest level in over two years.

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