CPI Inflation Rises to 0.71% in November as Food Deflation Narrows for 6th Straight Month

India’s Consumer Price Index (CPI) inflation rose modestly to 0.71% year-on-year in November 2025, up from a record low of 0.25% in October, official data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed on Friday. \

Despite this uptick, inflation remains well below the Reserve Bank of India’s (RBI) medium-term target of 4% for the tenth consecutive month, underlining persistently muted price pressures across the economy. 

Headline and Food Inflation Trends

• Headline CPI Inflation: 0.71% in November 2025, up from 0.25% in October 2025, representing a 46 basis-point increase. 

• Food Inflation (CFPI): –3.91% year-on-year in November, marking the sixth straight month of deflation in food prices.

• In October, food inflation was deeper at –5.02%, indicating a 111 basis-point narrowing of the food deflation.

Food price declines were broad-based, led by continued deflation in key staples including vegetables, pulses, and other perishables, although the pace of decline slowed compared with the previous month. 

Rural and Urban Inflation Patterns

• Rural CPI Inflation: 0.10% in November, up from –0.25% in October. 

• Urban CPI Inflation: 1.40% in November, compared with 0.88% in October. 

• Rural Food Inflation: –4.05% (vs. –4.85% in October).

• Urban Food Inflation: –3.60% (vs. –5.18% in October). 

The rise in both headline and food inflation was driven largely by higher prices of vegetables, eggs, meat and fish, spices, and fuel & light, which modestly lifted overall price levels year-on-year. 

Inflation Components and Sector Highlights

• Fuel & Light: Inflation in this category rose modestly, reflecting higher energy costs. 

• Housing: Remained stable at around 2.95% year-on-year. 

• Core CPI (excluding food & fuel): Continued to show moderate underlying inflation pressures, helped in part by recent GST rate cuts and subdued services price growth. 

Policy Implications

Although inflation is picking up from record lows, the overall price environment remains subdued. The persistent food deflation—now in its sixth consecutive month—and headline inflation well below RBI’s medium-term target provide room for potential monetary policy easing in coming months. Analysts had suggested this possibility following the RBI’s recent repo rate cuts as part of efforts to support demand. 

However, economists note that the inflation trend could gradually rise in early 2026 as base effects moderate and seasonal food price movements change, keeping policymakers vigilant ahead of the next Monetary Policy Committee meeting scheduled for February 2026.