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Retail inflation in November stood at 0.71%. The trend of decline in food prices has slowed down a bit. RBI has increased India’s GDP growth estimate to 7.3%. India’s economy remains strong and stable.
New Delhi. India’s retail inflation has increased slightly to 0.71% in November. It was at a record low in October, but due to the slowing down of decline in food prices, the figure for November has gone up slightly. This is the third consecutive month when inflation has been below the Reserve Bank of India’s target range of 2% to 6%. Inflation being so low is being considered a big relief for the Indian economy.
The country is currently in a kind of ‘Goldilocks’ phase, where growth is strong and inflation is normal. For this reason, the Reserve Bank has reduced the rate by 25 basis points this month and till now in 2025, a total of 125 basis points have been reduced. Loan takers are getting direct benefits from this.
food inflation
Food prices fell by 3.91% in November, while the decline in October was 5.02%. That is, the prices decreased, but the pace of falling slowed down a bit. Vegetable prices fell by 22.20%, which is lower than last month’s decline of 27.57%. This slow decline became the reason for increase in overall inflation.
Expectations of government and RBI
The government is confident that Prime Minister Narendra Modi’s policies like tax cuts and labor reforms will also limit the impact of American tariffs. On the other hand, RBI has reduced the inflation estimate for the current financial year from 2.6% to 2%. Also, GDP growth forecast has been increased from 6.8% to 7.3%. The 8.2% GDP growth in the July to September quarter has also given confidence to the government and now it is expecting the growth for the entire year to be 7% or more. Overall, inflation may have increased slightly in November, but the pace of the economy and policy support still place it among the strongest and stable economies in the world.
