India's inflation ticks up, but still super low
India's retail inflation nudged up to 0.71% in November 2025 after hitting a record low of 0.25% the month before—even though food prices dropped by 3.91%.
This is way below the RBI's usual target range of 2-6%, with the year's average sitting at just 1.8%.
RBI expects prices to stay chill for now
The Reserve Bank of India just lowered its inflation forecast for next year again—now predicting only 2.1% for FY26, down from an earlier estimate of 2.6%.
For this quarter, they're expecting an average of just 0.6%, but think things could pick up to around 2.9% by the end of the year as last year's unusually low numbers fade out.
Global vibes: More breathing room for RBI
In India, inflation is expected to settle near 4% next year.
For India's central bank, this means a bit more flexibility and less pressure as it navigates economic ups and downs ahead.