Archive · 5 Jan 2026
India's December 2025 Inflation Likely Rose
India's inflation rate, which measures how much prices for things like food and clothes are going up, is expected to have gone up a little bit in December 2025.
It's predicted to be 1.66%, which is higher than the 0.71% in November 2025 but still much lower than the 5.2% from December 2024.
The increase is mostly because food prices are going up, especially for things like tomatoes.
The central bank, called the RBI, thinks that overall inflation will stay low, and they even cut interest rates a bit to help the economy grow.
They're also predicting that inflation will stay within their target range of 2% to 6% for the next few quarters.
India's retail inflation likely rose to 1.66% in December 2025 from 0.71% in November 2025, driven by higher food prices.
Food inflation is projected to be -1.19%, up from -2.78% in November, with tomatoes seeing the highest price increase.
Core inflation, which excludes food and fuel, is expected to rise to 4.68% due to rising gold prices.
The RBI revised its CPI inflation forecast for 2025-26 to 2.0%, down from 2.6%, and cut the repo rate to 5.25%.
The RBI Governor described the current economic environment as a 'goldilocks period' with high growth and low inflation.
- Who
- Union Bank of India, Reserve Bank of India (RBI)
- What
- Projected increase in retail inflation for December 2025
- When
- December 2025, with data release on January 12, 2026
- Where
- India
- Why
- Due to rising food prices and other economic factors
- Projected December 2025 Inflation
- 1.66%
- November 2025 Inflation
- 0.71%
- December 2024 Inflation
- 5.2%
- Projected Core Inflation
- 4.68%
- Projected Food Inflation
- -1.19%
- RBI's 2025-26 CPI Inflation Forecast
- 2.0%
- Repo Rate as of December 2025
- 5.25%
- RBI's Inflation Target Range
- 2-6%
Sources
India retail inflation likely inched up to 1.66% in December as food prices rise: Report
December CPI inflation seen rising to 1.66% as food prices firm, gold lifts core inflation: UBI Research
India retail inflation likely rose to 1.66% in December — Here's why
Puzzling growth
