India’s retail inflation increased to 0.71 percent in November, reversing a record low seen in the previous month, according to government data. Even with the rise, inflation continues to remain below the Reserve Bank of India’s target range of 2 to 6 percent, offering relief to consumers and policymakers.
The rise in inflation was largely due to food prices falling at a slower pace compared to October. While food inflation stayed in negative territory, indicating that prices were lower than a year ago, the decline eased to around minus 3.9 percent in November. This was driven by higher prices of vegetables, cereals, eggs, meat and fish compared to the previous month.
Fuel and light inflation also edged up, adding to the overall increase in the consumer price index. In contrast, core inflation, which excludes food and fuel and reflects broader demand conditions, remained stable, suggesting that underlying price pressures in the economy are still weak.
Economists said the November data shows that inflationary pressures are gradually returning from unusually low levels, but remain well under control. The continued softness in prices has strengthened expectations that the central bank may consider further interest rate cuts to support economic growth.
However, experts cautioned that inflation may move higher in the coming months as favourable base effects fade and consumption picks up. Global commodity prices, weather conditions affecting food supply, and domestic demand trends will be key factors to watch.
For now, the data confirms that inflation remains comfortably contained, giving the RBI room to balance price stability with growth concerns. The central bank is expected to closely monitor incoming inflation and growth indicators before taking further policy decisions.
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