Retail inflation stands at 1.33% in December, remains below RBI's medium-term target

New Delhi [India], January 12 : The year-on-year inflation based on Consumer Price Index (CPI) for December, 2025 stands at 1.33% (Provisional) over December, 2024 mainly attributed to increase in inflation of Personal care and effects, Vegetables, Meat and fish, Egg, Spices and Pulses and Products, Ministry of Statistics & Programme Implementation (MoSPI) data said on Monday.

Headline inflation in December 2025 increased by 62 basis points relative to November 2025.

Inflation remained below the Reserve Bank of India's medium-term target of 4% for the 11th straight month.

The year-on-year food inflation for December is -2.71% (Provisional). The corresponding inflation rates for rural and urban areas are- 3.08% and -2.09%, respectively.

Inflation rose across both rural and urban areas. Rural headline inflation increased to 0.76% in December from 0.10% in November, while urban inflation climbed more sharply to 2.03%, up from 1.40% a month earlier.

Housing inflation eased marginally to 2.86%, while education and health inflation were 3.32% and 3.43%, respectively, indicating slight moderation relative to November. Fuel and light inflation declined to 1.97%, and transport and communication inflation softened to 0.76%.

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