Retail Inflation Stands At 1.33% In December, Remains Below RBIs Medium-Term Target

New Delhi: The year-on-year inflation based on the Consumer Price Index (CPI) for December 2025 stood at 1.33% (provisional) compared to December 2024. This was mainly attributed to higher inflation in personal care and effects, vegetables, meat and fish, eggs, spices, and pulses and products, according to data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Monday.

Headline inflation in December 2025 increased by 62 basis points compared to November 2025. Inflation remained below the Reserve Bank of India’s medium-term target of 4% for the 11th consecutive month.

Year-on-year food inflation for December stood at -2.71% (provisional). The corresponding food inflation rates for rural and urban areas were -3.08% and -2.09%, respectively.

Inflation rose in both rural and urban areas. Rural headline inflation increased to 0.76% in December from 0.10% in November, while urban inflation climbed to 2.03% from 1.40% a month earlier.

Housing inflation eased marginally to 2.86%, while education and health inflation stood at 3.32% and 3.43%, respectively, indicating slight moderation compared to November. Fuel and light inflation declined to 1.97%, and transport and communication inflation softened to 0.76%.