India’s Retail Inflation Touches 3 Month High in December 2025:
India’s retail inflation moved up to a three-month high in December 2025, reflecting easing food price deflation and rising core inflation pressures. Official data shows that while inflation remains comfortably below the Reserve Bank of India’s target, price trends in precious metals and rural areas have pushed the headline number higher, keeping policymakers and economists watchful.India’s retail inflation increased to 1.33% in December 2025, up from 0.71% in November. The data was released by the National Statistical Office, marking the last CPI reading under the 2012 base year.Retail inflation, measured by the Consumer Price Index (CPI), rose to 1.33% in December, making it a three-month high. This increase followed two months when inflation stayed below 1%.The main reason was the narrowing of food price deflation as favourable base effects began to fade.Despite the uptick, inflation remains well below the Reserve Bank of India’s medium-term target of 4%, with a tolerance band of 2% on either side.The December reading keeps inflation supportive of growth while signalling early signs of firming prices.
