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India’s retail inflation inched higher in November, with headline CPI at 0.71%, slightly below expectations but up from October’s ultra-low 0.25%.
The headline number rose, but it’s still comfortably low by historical standards, thanks largely to food prices staying in deflation.
What’s brewing: food inflation remained negative for the sixth straight month, coming in at –3.91%. That said, the pace of price drops slowed sharply, signalling that the relief from cheaper food may be easing. Vegetables were still the biggest drag at –22.2%, while pulses stayed in deflation at –15.86%.
The numbers
- Rural inflation up to 0.10% from -0.25%
- Urban inflation rose to 1.40% from 0.88%
- Fuel & light increased to 2.32%
- Housing steady at 2.95% & clothing & footwear: cooled to 1.49%
Why it matters: the data shows inflation is bottoming out, not surging. Food prices are still cushioning households, but the slowdown in deflation hints at rising costs ahead, especially for perishables.
For policymakers, this keeps the inflation narrative calm for now, but the easy gains on prices may be behind us.
