Business EconomyPosted at: Dec 13 2025 2:37PM


SBI report flags marginal rise in inflation but sees comfort on prices and rates

New Delhi, Dec 13 (UNI) India’s retail inflation has shown a marginal reversal in November 2025 but remains at a comfortable level, with overall price pressures still muted, according to SBI Research’s latest Ecowrap report released on Saturday here.
The SBI report notes that CPI inflation increased to 0.71 per cent in November from 0.25 per cent in October, mainly due to a rise in food and fuel prices. Food and beverages inflation, which had been in sharp deflation earlier, saw the pace of decline ease in November.
While prices of vegetables, pulses and spices continued to fall, inflation in fruits moved higher, contributing to the slight uptick in the headline number.
SBI Research highlights that fuel and light inflation also edged up to 2.32 per cent, adding to the increase. At the same time, prices in the miscellaneous category declined, except for personal care and effects, where inflation rose sharply because of higher gold prices.
The report points out that gold inflation remained extremely high at 58 per cent in November. Importantly, if gold is excluded from the CPI basket, headline inflation turns negative, indicating that domestic inflationary pressures are still largely absent.
On the impact of GST rationalisation, the SBI report revises earlier expectations. While initial estimates had suggested that GST changes could lower CPI inflation by around 85 basis points, a detailed item-wise analysis now shows that the actual reduction so far has been around 25 basis points during the September–November period.
SBI Research believes this estimate does not fully capture the impact of e-commerce discounts following GST cuts and expects the total reduction in CPI due to GST to reach about 35 basis points in FY26.
The report also discusses rural and urban inflation trends, noting that differences persist due to varying consumption patterns and supply dynamics. Rural food inflation, which usually remains higher because of a larger food component, has shown signs of easing, while urban food inflation has seen some increase in categories such as cereals, milk products, beverages and prepared foods.
In November, rural inflation stood at 0.10 per cent, while urban inflation was higher at 1.40 per cent.
SBI Research draws attention to Kerala’s inflation, which remained elevated at 8.27 per cent in November. The report attributes this largely to higher prices of gold, silver, and oils and fats, which have a higher consumption share in the state.
It also notes that government market interventions have helped moderate inflation from earlier peaks.
Another key concern flagged in the report is imported inflation. SBI Research says the imported component of the CPI basket has risen to 1.6 per cent, driven mainly by gold and oils and fats.
However, the current low headline inflation does not yet reflect the full build-up of imported inflationary pressures, especially in the context of a depreciating rupee.
Looking ahead, SBI Research expects inflation to rise gradually but remain manageable. The report forecasts CPI inflation at 1.8 per cent in FY26 and 3.4 per cent in FY27, supported by lower food inflation due to higher kharif production, healthy rabi sowing, adequate reservoir levels and favourable soil moisture.
Given this outlook, SBI Research does not see any immediate change in the RBI’s policy stance and expects interest rates to remain lower for longer, at least through the February policy review.
UNI SAS ARN
Please log in to get detailed story.
Tags: #SBI report flags marginal rise in inflation but sees comfort on prices and rates
More News

NITES complains to Centre over Wipro hiring

19 Jan 2026 | 9:41 PM

Bengaluru, Jan 19 (UNI) The Nascent Information Technology Employees Senate (NITES) has formally submitted a complaint to the union Labour Minister Mansukh L Mandaviya against Wipro Limited, citing serious recruitment irregularities affecting over 250 selected fresh graduates across multiple states.

see more..

New IBM platforms lets businesses, govts control AI workloads locally

19 Jan 2026 | 9:25 PM

Bengaluru, Jan 19 (UNI) IBM has launched a new software called IBM Sovereign Core, designed to help businesses, governments, and service providers manage AI workloads securely while keeping full control over their technology.

see more..

UP secures Rs 9,750 cr MoUs at Davos

19 Jan 2026 | 9:16 PM

Davos/ Lucknow, Jan 19 (UNI) The Uttar Pradesh Government delegation, led by state finance and parliamentary affairs Minister Suresh Kumar Khanna, began its engagements at the World Economic Forum (WEF) meeting in Davos with a strong focus on forging global partnerships and securing high-impact investments.

see more..

Arya Omnitalk CEO backs CCPA crackdown on illegal walkie-talkies

19 Jan 2026 | 9:13 PM

Bengaluru, Jan 19 (UNI) The Central Consumer Protection Authority's (CCPA) crackdown on the illegal sale of walkie-talkies on e-commerce platforms is timely and essential to protect both consumer safety and national security, Arya Omnitalk CEO Paresh Shetty said on Monday.

see more..

Nifty falls below 25,500 amid weak global cues

19 Jan 2026 | 7:37 PM

New Delhi, Jan 19 (UNI) The Indian stock market on Monday began the week on a subdued note. Nifty fell below 25,500 intraday amid weak global cues triggering broad-based profit booking.

see more..