Retail Inflation Rises to Three-Month High of 1.33% in December 2025; Food Inflation Still Negative

India's retail inflation edged up to a three-month high of 1.33 per cent in December 2025, driven largely by higher prices of kitchen essentials such as vegetables and protein-rich items, official data released on Monday showed.

India's Retail Inflation Rises to Three-Month High of 1.33% in December 2025

The inflation rate, measured by the Consumer Price Index (CPI), had stood at 0.71 per cent in November, indicating a noticeable acceleration during the month. The last time retail inflation was higher was in September 2025, when it touched 1.44 percent.

Despite the rise in headline inflation, food inflation remained in negative territory for the seventh consecutive month, reflecting continued softness in overall food prices. Food inflation stood at -2.71 per cent in December, although it moderated from -3.91 percent in November, suggesting a gradual firming up in prices of select food items.

Food Inflation Stays Negative for Seventh Month Despite Uptick in Headline Inflation

According to the National Statistics Office (NSO), the increase in both headline and food inflation was mainly attributed to higher prices in several consumption categories. "The increase in headline inflation and food inflation during the month of December, 2025 is mainly attributed to increase in inflation of personal care and effects, vegetables, meat and fish, egg, spices and pulses and products," the NSO said while releasing the CPI data.

Vegetables and protein-rich items such as meat, fish and eggs were among the key contributors to the upward movement in prices, reflecting seasonal supply pressures and higher input costs. Prices of pulses and spices also recorded an uptick during the month.

Despite the rise, retail inflation remained below the Reserve Bank of India's lower tolerance limit for the fourth consecutive month in December, offering continued comfort to policymakers.

Under the government-mandated inflation targeting framework, the RBI is required to maintain inflation at 4 percent, with a tolerance band of 2 percent on either side, meaning inflation should remain between 2 percent and 6 percent.

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