India’s retail inflation rises to 0.71% in November

The latest print was below the Reserve Bank of India’s target range of 2% to 6% for the third straight month.
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SUSHIL KUMAR VERMA

India’s annual retail inflation quickened to 0.71 per cent year-on-year in November, picking up from a record low in October, as the pace of decline in food prices slowed, government data showed on Friday.

. The latest print was below the Reserve Bank of India’s target range of 2% to 6% for the third straight month.

Retail inflation in October was at 0.25%.

The Indian economy is in a “rare goldilocks” phase of strong economic growth and moderate inflation, prompting the Reserve Bank of India to cut interest rates by 25 basis points earlier this month. The RBI has cut interest rates by 125 basis points in 2025.

Prime Minister Narendra Modi’s policies, including consumer tax cuts and labour reforms, are expected to limit the impact of U.S. tariffs on the South Asian economy.

Food prices fell 3.91% year-on-year in November against a decline of 5.02% in October. Vegetable prices fell 22.20% after a 27.57% decline a month ago.

For the current fiscal year ending March 31, the central bank has lowered its inflation projection to 2% from 2.6% earlier while raising the growth forecast to 7.3% from 6.8% earlier.

India’s 8.2% GDP growth in July-September has encouraged the government to raise its growth projection to 7% or more from 6.3% to 6.8% earlier.

(This is a developing story. Stay tuned for more updates)

Published on December 12, 2025