India’s inflation rate accelerated from record lows but came in under the RBI’s inflation target for the third consecutive month.
The consumer price index, a measure of retail inflation in India, stood at 0.71% in November 2025 as against a record low of 0.25% in October 2025, according to government data released on Friday. The Reserve Bank of India targets India’s inflation rate between 2% and 6%.
- Food prices fell 3.91% YoY in November versus 5.02% in October.
- Vegetable prices fell 22.20% YoY in November vs 27.57% in October.
The Indian economy is in a “rare goldilocks” phase of strong economic growth and moderate inflation, prompting the RBI to cut the benchmark repo rate by 25 basis points earlier in December. That’s 125 basis points of rate cuts in one calendar year. RBI has now lowered its inflation forecast for FY26 to 2% from 2.6% earlier and raised the GDP growth forecast to 7.3% from 6.8% earlier.
India’s economic growth has proven to be resilient in the face of 50% US tariff on its exports to the world’s largest economy—thanks in part to GST reforms and new labour codes.
India’s 8.2% GDP growth in July-September has encouraged the government to raise its growth projection to 7% or more from 6.3% to 6.8% earlier.