Consumer price inflation dropped slightly from 6.2% in October to 5.5% in November, mainly due to a slowdown in food price increases.
Vegetable inflation fell from 42.2% to just under 30%, and pulses saw a drop to over 5% after previous double-digit rises.
However, overall food inflation remained high at over 9%, with edible oil prices rising by 13.3% due to global price increases and higher import duties.
Specific items like coconut oil, garlic, potatoes, and vegetables like cauliflower and cabbage saw sharp price hikes, affecting consumers.
Rural areas are facing even higher inflation (around 6%) and more severe food price increases than urban areas.
Manufacturing and services sectors reported rising costs, forcing them to increase prices at the fastest rate in 12 years.
The Reserve Bank of India (RBI) revised its inflation forecast for October-December from 4.8% to 5.7%, and inflation in December could still be high at 5.4%.
Despite calls for an interest rate cut, the RBI may delay action as inflation remains above the target and growth starts to recover.
The government's upcoming budget could influence future rate cuts if it shows fiscal responsibility and measures to ease living costs.
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