Inflation in India Rises to 0.71% as Food Deflation Eases

India’s annual retail inflation rose to 0.71% year-on-year in November, up from a record low of 0.25% in October, according to government data.

The increase in inflation reflects a moderation in food-price declines, which had been the main driver of unusually low readings in recent months, alongside resilient domestic demand.

Despite the uptick, inflation remained below the Reserve Bank of India’s target band of 2% to 6% for a third consecutive month, offering policymakers added flexibility.

Growth and Policy Outlook

Economists say strong GDP growth combined with recent rate cuts has placed India in a so-called “goldilocks” phase, where inflation is contained without undermining economic momentum.

The central bank is expected to keep a close watch on inflation trends in the coming months, particularly movements in food and energy prices.