India's retail inflation eases to 5.48% in November

This reduction was driven by the arrival of fresh produce, which helped temper soaring vegetable prices.

Food inflation, a significant component of the Consumer Price Index (CPI), dropped to 9.04% in November from 10.87% in October.

Rural inflation rose to 9.10% (from 6.68% in October), while urban inflation increased to 8.74% from the previous 5.62%.

Analysts had indicated this decline, with a Reuters poll projecting inflation at 5.53% for the month.

Vegetable prices, which surged 42.18% year-on-year in October, eased to a 29.33% rise in November, thanks to a robust summer harvest aided by favourable monsoon conditions.

The government anticipates further reductions in food inflation due to healthy reservoir levels, improved winter crop sowing, and higher minimum support prices.

Inflation for cereals stood at 6.88% in November, down slightly from 6.94% in October, while pulses inflation decreased from 7.43% to 5.41%.

Core inflation, which excludes volatile items like food and energy and serves as a better indicator of domestic demand, remained stable between 3.64% and 3.7%.

The unexpected inflation peak in October, driven by the steepest rise in vegetable prices in nearly four years and additional import duties on edible oils, had strained household budgets.

The recent fall in inflation offers relief to consumers, particularly in a country where food accounts for a significant share of household spending.