India’s retail inflation quickened to 1.33% in December 2025 on an annual basis, as against 0.71% in November 2025, driven by higher prices in personal care, vegetables, meat and fish, eggs, spices, and pulses and products. This marked the 11th straight month that inflation remained below the Reserve Bank of India’s medium-term target of 4%.
Food prices, which account for nearly half of the CPI basket, fell 2.71% year-on-year in December, narrowing from a 3.91% decline in November. Vegetable prices declined 18.47%, compared with a sharper 22.20% fall a month earlier, reflecting easing deflation in the food segment.
Fuel and light inflation eased to 1.97% in December from 2.32% in November 2025.
Housing inflation stood at 2.86% year-on-year in December, marginally lower than 2.95% in November. The housing index is compiled for the urban sector only.