India’s inflation rate based on wholesale prices remained in the negative zone in November, as prices declined by (-) 0.32 per cent last month compared to the same month of the previous year, according to figures released by the Commerce and Industry Ministry on Monday.
WPI-based inflation was (-) 1.21 per cent in the previous month of October and 2.16 per cent in November last year.
“The negative rate of inflation in November 2025 is primarily due to a decrease in prices of food articles, mineral oils, crude petroleum and natural gas, manufacture of basic metals and electricity,” the ministry’s statement said.
Meanwhile, the inflation rate based on the Consumer Price Index (CPI) was estimated at 0.71 per cent for November this year, which was marginally higher than the 0.25 per cent in October, according to figures released by the Ministry of Statistics last week.
Food inflation stayed in the negative zone during November at -3.91 per cent as prices of food goods fell compared to the same month of the previous year. Food inflation has now stayed negative for the sixth month in a row, easing the burden on household budgets.
The overall outlook for inflation remains benign with RBI slashing its forecast for India’s inflation rate for the financial year 2025-26 to 2 per cent from 2.6 per predicted in October due to the sharp decline in food prices and the GST rate cuts playing out.
RBI Governor Sanjay Malhotra recently announced reduction in the repo rate by 25 basis points to 5.25 per cent from 5.5 per cent earlier as inflation had come down and the monetary policy could focus on boosting growth.
Malhotra said that the surge in economic growth to 8.2 per cent growth in the second quarter of the current financial year and the sharp decline in inflation to 1.7 per cent had provided a rare “Goldilocks period” for the Indian economy.
He said, “The MPC noted that headline inflation has eased significantly and is likely to be softer than the earlier projections, primarily on account of the exceptionally benign food prices. Reflecting these favourable conditions, the projections for average headline inflation in 2025-26 and Q1:2026-27 have been further revised downwards.”
Malhotra also pointed out that core inflation (which excludes food and fuel) remained largely contained in September-October, despite continued price pressures exerted by precious metals. Excluding gold, core inflation moderated to 2.6 per cent in October. Overall, the decline in inflation has become more generalised, he added.
The RBI Governor observed that food supply prospects have improved on the back of higher kharif production, healthy rabi sowing, adequate reservoir levels and conducive soil moisture. Barring some metals, international commodity prices are likely to moderate going forward.
