November CPI inflation eases to 5.48%, food inflation surges to 9.04%

India’s consumer price index (CPI) inflation for November stood at 5.48%, slightly below the 5.5% projection in the CNBC-TV18 poll and marking a decrease from the 6.21% recorded in October. The moderation in CPI inflation signals a potential easing of broader price pressures in the economy.

However, food inflation continues to remain elevated, coming in at 9.04% for November. This marks a significant rise from the expected 8.5% and, despite being lower than October’s 10.87%, highlights the ongoing challenges posed by food price volatility. The sharp rise in food inflation continues to strain household budgets, especially in staple items such as vegetables, pulses, and oils.

Core inflation, which excludes food and fuel, remained relatively stable at around 3.7%, indicating that inflationary pressures outside of the food sector are not a major concern at the moment.

The high food inflation rate indicates that challenges persist in controlling prices in key consumption areas, which could influence the Reserve Bank of India’s future policy decisions. While the overall inflation rate is moving in the right direction, persistent food inflation remains a significant risk to achieving the RBI’s medium-term inflation target of 4%.

Further details on price trends, particularly in food and essential goods, will be closely watched by policymakers to gauge the trajectory of inflation and to decide on any potential interventions.