Inflation 'Down But Certainly Not Out', Says RBI

India's annual inflation rate fell to 5.88% in November, below the upper end of the RBI's comfort band of 6% for the first time this year.

India's headline inflation has broadened out and become "stubborn", the Reserve Bank of India (RBI) said in its monthly bulletin today.

"Inflation may be slightly down, but it is certainly not out," the central bank said in a report.

With headline inflation projected to rise in the second quarter of the financial year starting next April after declining in the first three months, there can be no letting down of the guard, the bank said.

India's annual inflation rate fell to 5.88% in November, below the upper end of the RBI's comfort band of 6% for the first time this year.