Retail Inflation Rises Slightly to 0.71% in November 2025

India’s retail inflation, measured by the Consumer Price Index (CPI), increased modestly to 0.71% in November from 0.25% in October. The rise was largely driven by a slowdown in food deflation, as seasonal price increases were recorded in several food items. While food prices remain in deflation, the easing of the favourable base effect pushed overall inflation slightly higher.

Key November Trends

• Food deflation eased to -3.91% from -5.02% in October.
• Prices of vegetables, eggs, pulses, fruits, and meat & fish increased sequentially.
• Rural inflation turned positive at 0.10%, reversing the previous month’s -0.25%.
• Urban inflation rose to 1.4% from 0.88% in October.
• Food deflation persisted in both rural (-4.05%) and urban (-3.6%) segments.

Additionally, inflation in cereals fell sharply to a 50-month low of 0.1%, reflecting easing supply pressures. Prices of edible oils moderated to 7.87%, though they still remain elevated.

Rural vs. Urban Inflation

A notable shift occurred in rural India, where inflation crept back into positive space.

• Rural CPI: 0.10% (from -0.25% in October)
• Urban CPI: 1.4% (up from 0.88%)

Interestingly, food prices remained in deflation in both zones,

• Rural food inflation: -4.05%
• Urban food inflation: -3.6%

This indicates that while food prices eased uniformly, non-food components—especially in urban regions played a larger role in driving inflation higher.

About CPI Inflation

• CPI released by: National Statistics Office (NSO)
• CPI categories include: Food & beverages, housing, fuel, clothing, miscellaneous services
• Base element: Comparison of current prices with the same month in the previous year
• Key contributors: Food (largest weight), fuel, core items
• Deflation refers to: Negative inflation (prices falling year-on-year)

Key Takeaways

• CPI retail inflation rose to 0.71% in November from 0.25% in October.
• Food deflation eased to -3.91%, pushing overall inflation upward.
• Rural inflation turned positive at 0.10%, while urban inflation rose to 1.4%.
• Cereal inflation dropped to a 50-month low of 0.1%.
• Edible oil inflation moderated to 7.87%, though still elevated.