India’s Inflation Hits Three-Month Peak at 1.33% in December 2025

Retail inflation in India rose to 1.33% in December 2025, marking a three-month high. This increase is attributed to higher costs in several sectors including personal care products, vegetables, meat, fish, eggs, spices, and pulses. The inflation rate has now increased for two consecutive months, following a figure of 0.71% in November 2025.

Despite this recent rise, the inflation rate remains significantly below the Reserve Bank of India's (RBI) target of 4%, a benchmark that the institution has aimed to maintain. This 1.33% figure continues a trend observed over the past eleven months, during which the inflation rate has consistently remained below the RBI’s set objective.

Food inflation has shown mixed signals, with prices for certain commodities still experiencing a decline. Notably, the rate of deflation in vegetable prices has eased, reflecting changing market dynamics that could influence future spending behaviours.

Analysts from various financial institutions are closely monitoring these developments. A spokesperson from the RBI mentioned, "The current inflation scenario indicates resilience in the economy despite the upward movement. We remain committed to our target while balancing growth and stability."

As the economic landscape evolves, ongoing fluctuations in inflation will be crucial for policymakers and consumers alike. The RBI's focus remains directed towards maintaining price stability while promoting economic growth through careful monitoring and timely interventions.

This most recent data comes from the Ministry of Statistics and Programme Implementation in India, which releases inflation figures monthly, offering a vital snapshot of the country’s economic health. The variations in retail inflation, particularly in the food sector, highlight the complexities faced by consumers and businesses amid ongoing challenges.

The implications of these inflation trends reach far beyond mere statistics. As costs fluctuate, they impact consumer behaviour, potentially affecting broader economic activities such as spending and investment. For households, the increasing costs of basic goods could lead to adjustments in budgets and purchasing patterns, ultimately influencing overall economic recovery in the aftermath of recent global disruptions.