November Inflation Data: India's Headline Inflation Falls To 5.48%; Down From 6.21% In Oct

November Inflation Data: India's Headline Inflation fell to 5.48%; down from 6.21% in October. According to the November 2024 inflation data released on Thursday, the year-on-year inflation rate based on the All India Consumer Price Index (CPI) for the month of November 2024 over November 2023 was 5.48% (Provisional). Corresponding inflation rates for rural and urban are 5.95% and 4.83%, respectively.

With this, the headline inflation has fallen within the tolerance limit of the Reserve Bank of India ( RBI ). 

Decline in food inflation due to a fall in ‘food  and beverages’ group

The Consumer Food Price Index (CFPI) for November 2024 over November 2023 stood at 9.04% (Provisional). The corresponding inflation rate for rural and urban are 9.10% and 8.74%, respectively. After December 2023, the inflation rate for both CPI(General) and CFPI was on a decline and reached its lowest point in July 2024. However, from August 2024 to October. 2024, an increasing trend was observed. 

November 2024 inflation number is once again a decline from the post-July 2024 trend. The decline in inflation in November 2024 is mainly due to the decline in inflation in the ‘food & beverages’ group. 

Year-on-year Housing inflation rate for November 2024 was seen at 2.87% against the corresponding inflation rate for the month of October 2024, which was at 2.81%. The housing index is compiled for the urban sector only.

A significant decline in inflation was observed in the categories of  - Vegetables, Pulses & Products, Sugar & Confectionary, Fruits, Eggs, Milk and products, Spices, transport & communication and Personal care & effects subgroups. 

The fall in inflation within the RBI's permissible range of 4-6 per cent may pave the way for a rate cut in February 2025, when RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) meets.