Food inflation set for relief in H2 FY26, but next year could bring a fresh surge: Report

Above-normal monsoon rains and better sowing conditions are expected to support the benign trajectory of food inflation in the second half of FY2026. However, according to ICICI Bank's Global Markets Sectoral Update on the wholesale inflation outlook, food inflation is likely to rise next year (FY27) due to an unfavourable base.