The Daily Brief What's the story behind India's near-zero inflation rates?
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Nov 19, 2025 Discover how India's retail inflation plummeted to near zero, driven by sharp food deflation and GST cuts. Learn about the surprising insights from core inflation and why consumers still feel the pinch. Dive into India's booming steel market, where demand from construction and renewables is soaring. Find out how steelmakers are adapting with innovative capex plans and value-added products, all while addressing challenges from carbon rules and global competition.
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Why Headline Inflation Collapsed
- India's headline CPI hit near-zero largely because food prices plunged and GST cuts took effect.
- Vegetables and pulses led the drop after an unusually high base last year and a bumper monsoon.
Gold Skews Core Inflation
- Core inflation looks higher only because gold surged about 58% year‑on‑year.
- Excluding gold, most non-food, non-fuel prices were largely flat.
Perception Keeps Rates High
- Consumers perceive inflation near 7.4% despite near-zero official inflation.
- This belief keeps bond yields high and real borrowing costs elevated.