New Delhi [India], Jan. 12 — Retail inflation in India, measured by the Consumer Price Index (CPI), stood at 1.33% year-on-year in December 2025, remaining well below the Reserve Bank of India’s medium-term target of 4% for the 11th consecutive month, according to provisional data released by the Ministry of Statistics & Programme Implementation (MoSPI).
The increase in December inflation was primarily driven by higher prices for personal care and effects, vegetables, meat and fish, eggs, spices, and pulses and related products. Overall, headline inflation rose 62 basis points compared to November 2025.
Food inflation for the month was recorded at -2.71%, with rural areas at -3.08% and urban areas at -2.09%. Inflation rose across both segments, with rural headline inflation increasing to 0.76% from 0.10% in November, and urban inflation climbing to 2.03%, up from 1.40% in the previous month.
Other components showed moderate shifts: housing inflation eased slightly to 2.86%, education and health inflation were 3.32% and 3.43%, respectively, while fuel and light inflation declined to 1.97%, and transport and communication softened to 0.76%.
The data indicates that overall price pressures in the economy remain muted, providing room for the RBI to maintain a steady monetary policy stance.
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