New Delhi, Jan 12 || India’s inflation rate, based on the Consumer Price Index (CPI), was estimated at 1.33 per cent for December 2025, which is marginally higher than the corresponding figure of 0.71 per cent for November.
Food inflation remained in the negative zone during December at -2.71 per cent, as prices of food goods fell compared to the same month of the previous year. Food inflation has now stayed negative for the seventh month in a row, easing the burden on household budgets. However, the figure for December was a tad higher than the -3.91 per cent recorded for November.
The increase in headline inflation and food inflation during December 2025 is mainly attributed to an increase in inflation of personal care and effects, vegetables, meat and fish, egg, spices and pulses, according to an official statement.
However, the overall outlook for inflation remains benign. The RBI’s monetary policy committee (MPC) last month slashed its forecast for India’s inflation rate for the financial year 2025-26 to 2 per cent from 2.6 per cent predicted in October due to the sharp decline in food prices and the GST rate cuts playing out.