India’s headline retail inflation rate based on the Consumer Price Index (CPI) rose slightly in November to 0.71 per cent from October’s record low of 0.25 per cent, data released on Friday by the Ministry of Statistics and Programme Implementation (MoSP) showed. Inflation was dragged higher by an unfavourable base effect, which was particularly strong for food items. Despite the unfavourable base, food prices were down on a year-on-year basis for the sixth month in a row in November, this time by 3.91 per cent. In October, food prices were down by a larger 5.02 per cent.

“The marginal uptick in retail inflation was on account of decline in the food deflation,” said Paras Jasrai, Economist at India Ratings & Research. “The deflationary trend in food items was led by strong deflation i

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