India's Retail Inflation Rises to 0.71% in November

India's retail inflation rate edged higher to 0.71 percent in November, up from a record low of 0.25 percent the previous month, according to data released by the Ministry of Statistics and Programme Implementation on Friday. The consumer price index, or CPI, remained well below the Reserve Bank of India's four percent target, providing continued flexibility for monetary policy adjustments amid a backdrop of robust economic growth.

The uptick in headline inflation stemmed primarily from rising prices in vegetables, eggs, meat and fish, spices, and fuel and light, the ministry stated. Fuel and light prices increased 2.32 percent year-on-year in November, compared with 1.98 percent in October. While overall food prices continued to deflate, the contraction narrowed to 3.91 percent from 5.02 percent, reflecting a smaller decline in vegetable prices at 22.2 percent versus 27.6 percent the prior month. This moderation was attributed to a high base from the previous year and improved supplies following above-normal monsoon rains, alongside government consumption tax cuts that helped contain broader price pressures.

Core inflation, excluding volatile food and fuel items, eased slightly...