India’s retail inflation rises to 1.33% in December:CPI inflation increases 3rd time in last 5 months on back of surge in food prices

India’s retail inflation has increased for the second time in a row to 1.33% in December 2025. Previously, the inflation print in the preceding month of November was reported to be risen to 0.71%. The inflation figures have remained below the target of 4% of the Reserve Bank of India’s (RBI) for the 11th straight month in December. CPI inflation inched up in both the rural and urban segments to 0.76% and 2.03%, respectively, in the month under consideration. Retail Inflation Trends in last 15 months:
Reason behind surge in India’s inflation: The annual percentage rise in prices of items in India can be attributed to the increment in the prices of food items like vegetables, pulses, spices, egg, meat and fish and also personal care and effects. These items have become costlier in last one year. Prices of food items like vegetables had begun to increase from November 2025, itself: Prices of food items like vegetables had largely fallen in the country from January 2025 to October 2025, but, since November, the rates have begun to rise. Consequently, veggies became costly in December as the vegetables inflation print increased to (-) 18.47%from (-) 22.20% in November. Non-veg foods too became expensive, from Nov 2025: While, prices of non-vegetarian foods like egg, meat and fish had remained subdued till October 2025, but, their rates surged considerably in November and December. Egg inflation print for December 2025 came in higher at 4.76%. Meat and fish December inflation print also inched to 5.12% Oil Fats inflation fell consecutively in last 4 months: The oil fats inflation has fallen consecutively in the last 4 months running into December as it fell to 6.75%. Personal care and effects inflation rises to alarming levels: The personal care and effects inflation rose to 28.07% in December from 24.04% in November. RBI had reduced India’s inflation projections for FY25 FY26 While delivering the December 2025 MPC statement, the RBI governor Malhotra had said that the rate-setting panel had reduced India’s inflation projections for the remainder of FY26 and also for the first two quarters of the next fiscal. RBI’s Projections of Inflation For FY26 FY27 – Q1 Q2 ​