Inflation is 0.71%, So Why Does Life Still Feel Expensive? The Truth About "Sticky" Costs
- Remin Francis I R
- 11 hours ago
- 3 min read
If you glanced at the news headlines, you probably saw a number that looked too good to be true. According to the latest government press release, India’s headline inflation rate for November 2025 is 0.71%.
On paper, this is amazing news. It suggests that prices are barely moving. Compared to this time last year, when inflation was over 5%, we seem to be living in a completely different economic landscape.
But if you are nodding your head thinking, "My bank account definitely doesn't feel like inflation is zero," you aren’t imagining things. And if you happen to be living in Kerala, you are living in an entirely different economic reality compared to the rest of the country.
There is a massive disconnect between the headline number and your monthly bills. This is due to "Sticky Inflation" and deep regional disparities. Here is what is really happening behind that 0.71% figure.
The Great Food Crash
To understand why the national number is so low, we have to look at food. The All-India Consumer Food Price Index (CFPI) has hit negative territory at -3.91%.
Nationally, vegetable prices have crashed by over 22%. Because food makes up a huge chunk of the "average" Indian spending basket, these massive drops pull the overall inflation number down. But while you can survive without buying expensive onions, you cannot skip rent, school fees, or medical bills.
The "Sticky" Costs Refuse to Drop
While food is cheaper, the "service" sectors, the things that define a middle-class budget, are quietly getting more expensive. These are costs that tend to go up and stay up.
According to the November data:
Housing: Up by 2.95%. Rent costs rarely go down.
Education: Up by 3.38%. This is a non-negotiable cost for families.
Health: Up by 3.60%. Medical inflation remains steady and high.
Personal Care: The biggest shocker. The "Personal Care and Effects" category has skyrocketed by 24.04%.
The Kerala Anomaly: A State of Its Own
While the national average is sitting comfortably at 0.71%, Kerala stands out as a massive outlier.
According to the state-wise data, Kerala is experiencing an inflation rate of 8.27%.
To put that in perspective:
National Average: 0.71%
Delhi: 0.34%
Kerala: 8.27%
While most of the country is benefiting from the drop in food prices, consumers in Kerala are facing significant price pressures. Even more surprising is the split within the state.
Nationally, rural areas are seeing almost zero inflation (0.10%). However, Rural Kerala is seeing a blistering inflation rate of 9.34%, while Urban Kerala is at 6.33%. This completely reverses the national trend.
Why the Disconnect?
The data highlights a "Two-Speed" Economy.
The Urban/Service Squeeze: For city dwellers across India, the basket is weighted heavily toward Housing (which accounts for over 21% of the urban index), Education, and Miscellaneous services. Since these "sticky" costs are rising, the relief from cheap vegetables is barely felt.
The Regional Gap: Kerala’s high inflation suggests that the cost of living, likely driven by wages, services, and consumption patterns unique to the state, is decoupling from the national trend. While a family in Bihar might be celebrating lower grocery bills (inflation there is actually negative at -1.67%), a family in Kochi is paying significantly more for their daily life than they were a year ago.
The headline inflation rate of 0.71% is technically accurate, but it masks the pain points.
We are seeing deflation in essential goods (food) but sticky inflation in essential services (housing, health). And if you are in Kerala, you are facing a high-cost environment that the rest of the country isn't currently experiencing.
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