Consumption and low inflation lift India’s Q2 FY26 growth

India’s economy expanded 8.2 percent year-on-year in Q2 FY26, outperforming estimates on resilient consumption demand. CPI inflation eased sharply to 0.25 percent in October, supported by food deflation of 5.02 percent. Wholesale price inflation remained negative at minus 1.21 percent. The RBI kept the repo rate unchanged at 5.50 percent, maintaining a growth supportive stance.