NEW DELHI: Retail inflation inched up marginally in Nov from a record low in Oct, led by an some uptick in prices of vegetables, eggs, meat and fish, spices – prompting experts to say that it is expected to remain benign for now.Data released by the National Statistics Office (NSO) on Friday showed retail inflation, as measured by the consumer price index (CPI), rose an annual 0.7% in Nov, a tad higher than the 0.3% in Oct and below the 5.5% in Nov last year. There is an increase of 46 basis points in inflation in Nov compared to Oct.The food price index contracted 3.9% in Nov compared to a decline of 5% in Oct. The statistics office said there is an increase of 111 basis points in food inflation in Nov compared to the previous month. Urban inflation was higher at 1.4% while rural was at 0.1%.The data showed vegetable inflation fell 22.2% during Nov while pulses and products contracted 15.9%. Spices fell 2.9%. The food and beverages index fell 2.8% during the month. Personal care and effects inflation remained stubborn, rising 24%, largely led by gold prices.Experts said most food items have hardened in Dec compared to Nov and pointed to the surge in tomato prices in Dec, which they said could “temper the typical seasonal dip that is seen in the vegetables index in Dec every year.”Earlier this month, the Reserve Bank of India (RBI) cut the policy repo rate by 25 basis points against the backdrop of sharp easing in price pressures. “A continued base-normalisation and the hardening in prices of some vegetables could make the headline CPI inflation cross 1.5% in the next print, which will be the last before the next monetary policy committee (MPC),” said Aditi Nayar, chief economist at ratings agency Icra. “In our view, the evolving inflation-growth outlook, as well as the fiscal policy measures unveiled by the next Union Budget, will guide the MPC’s next decision. Our base case suggests a pause in the MPC’s Feb 2026 policy review,” said Nayar.
