India’s retail inflation edged up to 0.7 percent in November, reversing part of the sharp cooling seen in the previous month, as prices of select food items showed an uptick. The rise was driven by higher or firmer prices of vegetables, eggs, meat, fish, and spices, even as overall price pressures remained muted. The increase comes after inflation had fallen to a multi-year low of 0.25 percent in October, reflecting a gradual normalisation in food price trends.
Despite the increase, headline inflation continues to remain well below the Reserve Bank of India’s tolerance band of 2–6 percent, providing policymakers room to maintain a supportive stance. Economists note that while food deflation is easing due to seasonal and supply-side factors, the broader inflation environment remains benign, signalling limited near-term pressure on household budgets and interest rate policy.
