India’s Retail Inflation Climbs to 0.71% in November as Food and Fuel Prices Push Rates Higher From October

India's retail inflation edged up in November 2025, with the year-on-year Consumer Price Index (CPI) rising to a provisional 0.71% compared to November 2024. This marks an increase of 46 basis points from October 2025, when inflation had slipped to a record low. The latest data indicates a mild rebound in price pressures after months of subdued inflation.

India's CPI Inflation Rises to 0.71% in November, Up 46 Basis Points from October

India's headline retail inflation edged higher in November 2025 as rising prices of vegetables, eggs, spices, and fuel added fresh pressure on household budgets. According to government data released on Thursday, inflation picked up across both rural and urban regions, even though food inflation continued to remain in the negative territory.

Food Inflation Still Negative but Shows Noticeable Uptick

Food inflation, measured by the Consumer Food Price Index (CFPI), came in at -3.91% in November 2025, improving from deeper deflation levels seen in the previous month. Rural food inflation stood at -4.05%, while urban food inflation improved to -3.60%.

The month saw a 111-basis-point increase in overall food inflation compared to October 2025, reflecting price rises in key food categories.

Government data shows that the increase in both headline and food inflation during the month is largely due to vegetables, eggs, Meat and fish, spices, fuel and light.

Rural Inflation Turns Positive in November

Inflation in rural India recorded a notable shift in November. Rural headline inflation was 0.10%, compared to -0.25% in October 2025. Rural food inflation also improved to -4.05%, up from -4.85% in the previous month. The trend indicates rising price pressures in essential food items in rural households.

Urban Inflation Climbs to 1.40%

Urban inflation saw a sharper rise than rural areas. Headline inflation in urban India increased to 1.40% in November 2025, up from 0.88% in October. It also increased from -5.18% in October to -3.60% in November. The upward movement in urban inflation suggests rising costs in perishables and essentials across major cities.

"The slight rise in headline CPI to 0.71% in November remains benign and within the RBI's comfort zone. Inflation dynamics stay favourable, aided by food deflation and stable core components. The cumulative 125 bps rate cuts since February 2025, along with surplus liquidity and a resilient GDP, should further support consumption and private investment," said Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP.

"While inflation confirms contained demand pressures, volatility in some food items and global uncertainties call for vigilance, even as India's macro position outpaces most emerging markets," the expert added.

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