Archive · 12 Jan 2026
India's December Inflation Rises to 1.33%
India's inflation rate, which measures how much prices for things like food and clothes are going up, was 1.33% in December.
This is higher than November's 0.71%, but still lower than the government's target of 2-6%.
Food prices, which make up a big part of what people buy, went down compared to last year, but some items like vegetables and meat got more expensive.
The government and economists are watching these numbers to make sure prices stay stable.
The government will start using a new way to measure inflation next month, which will include more items and a newer base year.
The central bank, which controls interest rates, expects inflation to rise in the coming months and is planning to meet in February to decide if they should cut rates.
India's CPI inflation rose to 1.33% in December, up from 0.71% in November.
This marks the 11th consecutive month below the RBI's 2-6% target range.
Food prices fell 2.71% year-on-year in December, improving from November's -3.91%.
Urban inflation stood at 2.03% in December, up from 1.4% in November.
Rural inflation was recorded at 0.76% in December, rising from 0.10% in November.
- Who
- Statistics Ministry, Reserve Bank of India (RBI), Economists
- What
- Consumer Price Index (CPI) inflation for December 2025
- When
- Data released on Monday, January 12, 2026
- Where
- India
- Why
- Due to rising food prices and fading base effect
Economists
RBI
Future Inflation
Economists
Expect FY26 CPI inflation to undershoot RBI’s estimate by 10 to 15 bps and thus expect a 25 bps rate cut in February 2026.
RBI
Expects inflation to rise further in the coming months and average around 4% in the first half of 2026-26.
- December Inflation Rate
- 1.33%
- November Inflation Rate
- 0.71%
- Targeted Inflation Range
- 2-6%
- Food Inflation (December)
- -2.71% year-on-year
- Food Inflation (November)
- -3.91% year-on-year
- Rural Food Inflation (December)
- -3.08%
- Urban Food Inflation (December)
- -2.09%
- Urban Inflation (December)
- 2.03%
- Rural Inflation (December)
- 0.76%
- Housing Inflation (December)
- 2.86%
- Education Inflation (December)
- 3.32%
- Transport and Communication Inflation (December)
- 0.77%
- Fuel and Light Inflation (December)
- 1.97%
Sources
December retail inflation seen between 1.6-1.7%
Govt mulls ways to tackle food subsidy spike
India’s CPI inflation rises to 1.33 % in December as food prices firm up – Firstpost
Retail inflation rises to 1.33% in Dec
India's retail inflation inches up to three-month high of 1.3% in December
Retail inflation rises to 1.33% in December due to higher prices of vegetables: Govt data
Retail inflation rises to 1.33% in December
December CPI hits 1.3% as vegetable prices push up inflation: Experts say rate cut is still likely —Here’s why
‘Old’ CPI inflation rises to 1.33% in December, ends 2025 outside RBI target range
Retail inflation rises to 1.33% in Dec: Govt data
India’s Retail Inflation Rises To Three-Month High, Still Below RBI’s Target Band
Inflation Rises To 3-month High In December 2025
Food inflation negative for seventh month in a row, Deflation may reverse for "food and beverages" from January - Business News