Retail inflation inches up in December to 1.33%, but stays below RBI’s lower tolerance band for fourth month

India's retail inflation stood at 1.33% in December 2025, remaining below the RBI’s lower tolerance limit for the fourth consecutive month, official data released on Monday showed.

Headline inflation, measured by the consumer price index (CPI), rose to 1.33% year-on-year in December from November but stayed well below the 2% lower end of the Reserve Bank of India’s mandated 2%-6% target band.

Food inflation remained negative for a seventh consecutive month even as price pressures eased slightly.

The increase in headline and food inflation during December was mainly due to higher prices of personal care and effects, vegetables, meat and fish, eggs, spices, and pulses and products, according to Ministry of Statistics and Programme Implementation.

In rural areas, headline inflation rose to 0.76% in December from 0.10% in November, while food inflation increased to (-)3.08% from (-)4.05%.

Urban headline inflation climbed more sharply to 2.03% in December from 1.40% in the previous month. Urban food inflation also edged up to (-)2.09% from (-)3.60%.