Overview
- Headline CPI rose to 0.71% year-on-year from October’s record low 0.25%, marking a 10th straight month below the RBI’s 4% target.
- Food prices stayed in deflation at -3.91% year-on-year versus -5.02% in October, with higher costs for vegetables, eggs, meat and fish, spices, and fuel and light narrowing the decline.
- Core inflation held near 4.4%, with record gold and silver inflation offsetting otherwise subdued non-food price momentum.
- Rural inflation moved to 0.10% from -0.25% and urban to 1.40% from 0.88%, while fuel and light inflation rose to 2.32% and housing stood at 2.95%.
- The RBI had already lowered its FY26 CPI forecast to 2% and raised GDP growth to 7.3% after a 25-basis-point repo cut, with economists watching upcoming prints for February policy cues.