Headline Inflation Slows Down to 5.48% in November

India’s headline inflation cooled at 5.48% in November as compared to 6.21% in October. The development comes after the Reserve Bank of India (RBI) kept the interest rates unchanged at 6.5% during its recent Monetary Policy Committee (MPC) meeting.

While the central bank refrains from furnishing monthly inflation estimates, RBI pegged the headline print at 5.7% during the December quarter. It expects the inflation to further cool down to 4.8% for FY25.

RBI said that inflation in the fourth quarter is likely to come down on account of ease in vegetable prices and strong autumn produce.

However, unforeseen weather circumstances and surge in prices of overseas agricultural products can stoke food inflation in the country. It noted on December 6, “Businesses expect pressures from input costs to remain elevated and growth in selling prices to accelerate from Q4.”