India’s retail inflation eased to 5.48% in November 2024, declining from 6.21% recorded in October, according to data released by the Ministry of Statistics and Programme Implementation. The inflation rate for November remained within the Reserve Bank of India’s target range of 2-6%.
The rural inflation rate for the month stood at 5.95%, while urban inflation was recorded at 4.83%. Food inflation, a major contributor to overall inflation, was at 9.04% in November, down from 10.87% in October.
The decline in inflation was primarily driven by a reduction in prices within the food and beverages category. Items such as vegetables, pulses, fruits, sugar, eggs, milk, spices, and personal care products showed lower inflation rates in November.
The data highlighted that among food items, garlic (85.14%), potato (66.65%), cauliflower (47.70%), cabbage (43.58%), and coconut oil (42.13%) saw the highest year-on-year inflation. Conversely, items such as jeera (-35.04%), ginger (-16.96%), LPG (excluding conveyance, -10.24%), and dry chillies (-9.73%) registered negative inflation.
In the housing sector, which is calculated only for urban areas, inflation increased slightly to 2.87% in November, compared to 2.81% in October.
Inflation trends over the past 13 months show a decline in rates after December 2023, with the lowest levels reached in July 2024. However, inflation rose from August to October before declining again in November.
The Reserve Bank of India has maintained a repo rate of 6.5% to ensure inflation remains controlled. Despite challenges posed by rising food prices, policymakers aim to achieve a long-term inflation target of 4%.
