RBI Bulletin: Global inflation cools, but sticky services prices keep advanced economies on edge

CPI Inflation

Headline inflation across economies showed a contrasting picture, but remained elevated in the advance economies amid persistent services inflation, according to the Reserve Bank of India’s (RBI) monthly bulletin.

In the Euro area, headline inflation increased further in November driven by services costs, while inflation in the US eased.

Inflation in the UK fell to a six-month low led by food and beverages. Japan’s inflation also edged lower on low food inflation.

However, in India, retail inflation in November inched up to 0.7 percent, from 0.3 percent in October, but price pressures remained exceptionally subdued for the second straight month.

Among major EMDEs, inflation picked up in China to a 21-month high driven by a rebound in food prices even as core inflation remained steady.

In contrast, a lower food inflation led to easing of inflationary pressures in Brazil and in Russia, where headline inflation moderated to its lowest level since September 2023.

Inflation in South Africa eased due to moderation in transport costs.