India's inflation creeps up, but still super low
India's retail inflation is expected to tick up to around 0.8% in November 2024, after hitting a record low of just 0.25% in October 2024.
Even with this small rise, prices are way below the RBI's comfort zone of 2-6%.
The official numbers drop on December 12, but for now, food prices—usually a big deal—are still falling (just not as fast as before), and core inflation is steady around 4%, helped by GST cuts.
Why does this matter?
With inflation staying so tame and the economy growing strong (a solid 7.3% forecast!), the RBI just cut interest rates again—making it cheaper to borrow money.
They've lowered rates by a total of 125 basis points since February.
The bank is expected to watch how these moves play out before deciding on more cuts, aiming to keep growth rolling without letting prices jump too much.