India's Retail Inflation Eases to 5.48% in November

Food prices remain elevated but show signs of cooling, while economists anticipate potential interest rate cuts under new RBI leadership.

Retail inflation in India slowed to 5.48% in November, down from 6.21% in October, but remains above the Reserve Bank of India's 4% target range.
Food price inflation, a significant driver of overall inflation, decreased to 9.04% from 10.47% in October, with notable declines in vegetables, pulses, and fruits.
Urban inflation was measured at 4.83%, lower than the rural inflation rate of 5.95%, reflecting regional price disparities.
The Reserve Bank of India kept its benchmark interest rate steady at 6.5% last week, citing persistent inflation risks despite slowing economic growth.
The appointment of new RBI Governor Sanjay Malhotra has raised expectations of a potential interest rate cut in early 2025 if inflation continues to decline.