India’s Retail Inflation Rises to 0.71% in November
India’s retail inflation edged up to 0.71 percent in November, according to official data, remaining well below the Reserve Bank of India’s target range of 2 to 6 percent. The increase marks a slight rise from the previous month but continues to reflect subdued price pressures across the economy.
Food Prices Push Inflation Higher
The rise in inflation was mainly driven by higher food prices. Vegetables recorded a noticeable increase after a period of decline, contributing to the overall uptick in the Consumer Price Index. Prices of pulses and some other food items also firmed up during the month. Despite this, overall food inflation remained contained compared to previous years.
Fuel and Core Inflation Trends
Fuel and light prices showed little change in November, helping to limit the overall rise in inflation. Core inflation, which excludes food and fuel, remained low, indicating weak pricing power in services and manufactured goods. Economists say this points to soft demand conditions in several sectors of the economy.
RBI Policy Implications
The RBI targets retail inflation at 4 percent, with a tolerance band of 2 to 6 percent. With November inflation significantly below this range, the central bank retains room to continue a growth-supportive monetary policy stance. Policymakers are expected to keep a close watch on food price movements and global economic trends while assessing future policy actions.
Impact on Consumers and Economy
Low inflation helps preserve household purchasing power, particularly for essential goods. However, experts caution that persistently low inflation may also signal sluggish demand. Analysts say upcoming data will be critical in assessing whether inflation remains muted or begins to normalise in the coming months.
