India's Nov Inflation Below 1%, But Core Prices & Select Items Still Rising

• India's retail inflation remained below 1% for the second consecutive month in November, reaching 0.7%.
• This low headline inflation is primarily driven by negative food prices, with softening vegetable and muted cereal inflation.
• However, core inflation, excluding food and fuel, persists above 4%, indicating price pressures in services and manufactured goods.
• Specific items like jewellery, edible oils, coffee, and household appliances are experiencing faster price increases.
• Early signs of month-on-month price increases suggest the current ultra-low inflation phase might be nearing its end.

Why It Matters: Low inflation is misleading; core prices are rising, hinting at future cost hikes.