Retail Inflation Softens in November

Retail inflation in India eased to 5.5% in November, down from a 14-month high in October, primarily due to moderating food prices. The National Statistical Office (NSO) reported that the consumer price index (CPI) rose by 5.5% annually, a slight decrease from the 6.2% in October and nearly matching the 5.6% recorded in November last year.

The consumer food price index also saw a rise of 9% in November, a decrease from the 10.9% in October. Rural inflation continued to outpace urban inflation at 6%, compared to 4.8% in urban areas.

Industrial Output Shows Modest Upturn

Separate data from the NSO indicated a modest upturn in industrial output, with a 3.5% annual rise in October, slightly higher than the 3.1% in September but lower than the 11.9% in October last year. The manufacturing sector experienced a 4.1% rise in October, up from 3.9% in the previous month.

Experts emphasize the importance of sustained and broad-based improvements in consumption to support industrial activity in the coming months. Favorable agricultural conditions are expected to aid in the moderation of food inflation by the end of FY25, boosting consumption. However, trends in urban demand, especially considering signs of slowdown, need careful monitoring.