The year-on-year inflation rate, based on the All India Consumer Price Index (CPI), stood at 1.33%, up slightly from 0.71% in November but still well within the comfort zone.
Representational Image (IANS)
India’s retail inflation remained below the Reserve Bank of India’s lower tolerance limit for the fourth consecutive month in December 2025, offering continued relief to consumers.
The year-on-year inflation rate, based on the All India Consumer Price Index (CPI), stood at 1.33%, up slightly from 0.71% in November but still well within the comfort zone.
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Food prices continued to provide a major cushion, with food inflation staying in negative territory for the seventh straight month.
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The Consumer Food Price Index (CFPI) recorded a year-on-year decline of 2.71% in December, compared with -3.91% in November, indicating a moderation in deflation but sustained softness in food prices.
According to the Ministry of Statistics and Programme Implementation (MoSPI), the uptick in headline inflation during December was largely driven by higher prices of personal care items, vegetables, meat and fish, eggs, spices, and pulses.
Inflation rose across both rural and urban areas. Rural headline inflation increased to 0.76% in December from 0.10% in November, while urban inflation climbed more sharply to 2.03%, up from 1.40% a month earlier.
Despite the rise, food inflation remained negative in both segments, at -3.08% in rural areas and -2.09% in urban centres.
Among key components, housing inflation eased marginally to 2.86%, while education and health inflation stood at 3.32% and 3.43%, respectively, showing a slight moderation compared to November. Fuel and light inflation declined to 1.97%, and transport and communication inflation softened to 0.76%.
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