FX.co ★ India Inflation Rebounds Modestly in November

India experienced an uptick in consumer price inflation, which reached 0.71% year-on-year in November 2025, up from October's historic low of 0.25%. This figure is in line with the market projections of 0.7%. Despite this increase, inflation stayed below the Reserve Bank of India's lower tolerance limit of 2% for the third consecutive month, primarily due to continued decreases in food prices, which declined by 3.91% compared to a 5.02% drop in October. This decrease was largely attributed to reduced costs in vegetables, pulses, and spices. Additionally, goods inflation remained mild, partly influenced by September's GST rate adjustments. Notable easing was observed in categories such as clothing and footwear, which slid to 1.49% from 1.70%, and miscellaneous services, which slightly decreased to 5.64% from 5.71%. Housing inflation remained largely stable, barely changing at 2.95% compared to 2.96%. On the other hand, there was modest growth in sectors such as pan, tobacco, and intoxicants, which increased to 2.96% from 2.87%, and fuel and light, which climbed to 2.32% from 1.98%.