New Delhi, Dec 12 (LatestNewsX) – Retail inflation in India edged up slightly in November but stayed comfortably below the Reserve Bank of India’s (RBI) 4 % goal, giving a boost to the country’s growth prospects, market analysts said Friday.
Vineet Nahata, Director at Power Gilt Treasuries, told LatestNewsX that the consumer price index rose to 0.71 % in November from 0.25 % in October.
“Despite the month‑on‑month uptick, the headline number stays more than 3 percentage points below the RBI’s 4 % target, reflecting a favourable macroeconomic environment,” said Nahata.
“The low inflation rate is extremely positive for the economy and creates a supportive backdrop for sustained growth,” Nahata told LatestNewsX.
Data from the Ministry of Statistics and Programme Implementation highlighted a stark split between urban and rural areas. Urban inflation hit 1.40 %, while rural regions recorded a modest 0.10 %.
Food prices kept pulling overall inflation down. Food inflation slid 3.91 % in November, falling 4.05 % in rural zones and 3.60 % in cities.
Detailed figures showed sharp price drops for staples: vegetables down 22.20 %, pulses 15.86 %, and spices 2.89 % compared with the same month a year earlier.
Other items rose: cereals up 0.10 %, meat and fish 2.50 %, eggs 3.77 %, milk 2.45 %, oils and fats 7.87 %, fruits 6.87 %, sugar 4.02 %, and non‑alcoholic drinks 2.92 %.
Nahata also said that talks on the India‑US trade pact are progressing, with more clarity expected soon.
His remarks came a day after Chief Economic Adviser V. Anantha Nageswaran said the agreement should be finalized by March, with tariff details to follow thereafter.
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