NEW DELHI, January 12, 2026
India’s retail inflation accelerated to 1.33% in December 2025, nearly doubling from 0.71% in November and marking a three-month high, according to official data released by the National Statistical Office (NSO).
The uptick was primarily driven by higher prices in vegetables, spices, meat, fish, eggs, pulses and related products, as well as personal care items. Despite the rise in headline inflation, food inflation remained in negative territory for the seventh consecutive month at -2.71%, though it improved slightly from -3.91% in November.
The Consumer Price Index (CPI)-based inflation rate in December stood below the Reserve Bank of India’s (RBI) lower tolerance band of 2% for the fourth straight month. The central bank is mandated to keep inflation at 4%, with a margin of ±2% (2%-6% range).
The NSO attributed the increase in headline inflation to price gains across key categories affecting household budgets, including protein-rich items and personal care products. Vegetable and spice prices notably contributed to the rise.
While the latest figures reflect some upward pressure on prices, the persistently negative food inflation signals subdued rural and agricultural demand. The data remains significant for monetary policy decisions, as inflation continues to track well below the RBI’s target midpoint.
