Retail inflation eases to 3-month low in November, industrial output up

The favourable progress of rabi sowing becomes critical for retail inflation, given that food inflation has been the leading driver in recent times. This, along with the subdued trend in inflation of the majority of the items, is expected to help the headline retail inflation head closer to 4% from end-FY25.

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2QFY26 along with a convincing fiscal arithmetic of Union Budget FY26, the long-awaited rate cut may take place in February 2025," said Devendra Pant, chief economist at India Ratings.

"The favourable progress of rabi sowing becomes critical for retail inflation, given that food inflation has been the leading driver in recent times. This, along with the subdued trend in inflation of the majority of the items, is expected to help the headline retail inflation head closer to 4% from end-FY25," he added.

The decline in inflation comes at a time when senior government functionaries including finance minister Nirmala Sitharaman and commerce minister Piyush Goyal have called for lower interest rates. On Wednesday, Sitharaman said inflation was a pressing global challenge that transcends borders and defies individual nations' efforts, calling for collective action to tackle the issue effectively.