Overview
- Official data show food prices fell 3.91% year on year in November versus a 5.02% decline in October, pointing to a softer pace of deflation.
- The government cited vegetables, eggs, meat and fish, spices, and fuel and light as the key drivers of the rise, with fuel inflation at 2.32% versus 1.98% in October.
- Core inflation was broadly steady near 4.4%, supported by sharp increases in precious metals even as other components eased after GST rate cuts.
- Urban inflation rose to about 1.40% and rural to 0.10% on a provisional basis, indicating a parallel uptick across regions.
- Following a 25 bps repo cut to 5.25%, the RBI expects FY26 inflation to average 2.0%, keeping policy geared toward supporting growth while monitoring food trends.