India Retail Inflation Rises: Retail inflation in the country has registered a slight increase and has reached 0.71 percent, whereas in October it was only 0.25 percent, which was the lowest level till date. This increase was mainly due to increased prices of daily essential commodities like vegetables, meat-fish, eggs, fuel and electricity.
According to the National Statistical Office (NSO), a decline of 3.91 percent was recorded in food prices in November 2025, which was 5.02 percent in October. This means that the pace of decline in prices has slowed down significantly. This indicates that pressure is increasing in the food sector.
Increased pressure on food items
There has been a sharp rise in the prices of vegetables and eggs, while the continuous increase in the prices of meat, fish and spices is putting additional burden on the pockets of consumers. Fuel and electricity inflation has also increased from 1.98% to 2.32%, which impacts transportation and production costs and ultimately affects the prices of all commodities.
There was a record decline in October due to cuts in GST in some sectors, but now when factors like festive demand, supply-chain costs and increased tariffs on imported goods are coming to the fore, it is natural for retail inflation to increase gradually. The challenge for the government is to keep inflation within a comfortable range by controlling food prices and fuel costs.
Demand increased during festive season
The burden on consumers has increased due to rising inflation in both rural and urban areas. Even though the Reserve Bank is estimating retail inflation at 2% in the current financial year, achieving this target looks challenging due to the weakness of the rupee, rising import costs and global geopolitical conditions.
The rupee crossing 90 has further complicated the situation for the government and economic managers as it creates additional pressure on all three fronts – inflation, trade deficit and financial stability.
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