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Food prices remained occasionally volatile during the 2025-26 fiscal year (FY26), and inflation stayed subdued, the Economic Survey 2025-26 revealed on Thursday. The Survey noted that price pressures remain “tamed and anchored”, despite occasional volatility in food prices. Core inflation has stayed subdued, reflecting improvements in supply chains, logistics efficiency and productive capacity across sectors.

“There is no threat of higher inflation from crude oil imports at present,” the Survey stated, adding that stable inflation expectations have helped preserve overall macroeconomic stability even amid global uncertainty.

Agriculture also continues to play a supportive role. Normal monsoon patterns and improved farm prospects have helped mitigate food inflation risks, while infrastructure expansion, ranging from airports and freight corridors to inland waterways, has eased supply bottlenecks and reduced cost pressures, the document noted.

What Did The Previous Survey Say About Inflation?

The Economic Survey 2024-25 noted that food prices remained elevated during the fiscal year, despite a moderation in overall inflation. According to the survey, retail headline inflation, measured by changes in the Consumer Price Index (CPI), eased from 5.4 per cent in FY24 to 4.9 per cent in FY25 so far.

The moderation in headline inflation was largely attributed to a 0.9 percentage point decline in core inflation, which excludes food and fuel component, between FY24 and the April-December 2024 period. This easing in non-food, non-fuel prices helped offset persistent pressures from food items.

At the global level, the survey observed that food inflation continued to trend downward, supported by improved supply conditions and favourable growing environments, which helped ease price pressures. However, the pattern differed across emerging economies. Countries such as China, India and Brazil saw relatively stickier food inflation, reflecting domestic supply-side challenges and demand dynamics that kept food prices under pressure despite broader disinflation trends.

India’s Growth Story

The Economic Survey 2025-26 projected that India’s economy will grow at up to 7.2 per cent in the 2026-27 financial year (FY27), offering an outlook on growth prospects in the coming year. Tabled in Parliament by Finance Minister Nirmala Sitharaman, the survey assessed the performance of the domestic economy in the current fiscal year and outlined key trends shaping the road ahead.

Sitharaman presented the annual economic review on January 29, just days before she is set to unveil the Union Budget 2026. The Budget Session of Parliament commenced on January 28 and will run until April 2, 2026, spanning 30 sittings. Both Houses will adjourn for a recess between February 13 and March 8.

In the previous Economic Survey, the government had pegged India’s GDP growth for FY26 in the range of 6.3 to 6.8 per cent. However, updated estimates recently suggested that the economy expanded at a better-than-expected 7.4 per cent in the current financial year, supported by a pickup in investment activity and manufacturing output.

The latest survey underscores improving growth momentum, even as policymakers prepare to outline fiscal priorities and reform measures in the upcoming Budget.