What is India's CPI inflation rate for December?
Synopsis
In December 2025, India's CPI inflation hit 1.33%, up from 0.71% in November. Food inflation stayed negative at -2.71%, continuing for seven months. The RBI has revised inflation forecasts downwards, emphasizing economic growth and stable food prices, creating a rare opportunity for the economy.
Key Takeaways
The CPI inflation in December 2025 is 1.33%, up from 0.71% in November.
Food inflation remains negative at -2.71%, continuing for seven months.
The RBI has cut interest rates to stimulate economic growth.
Economic growth reached 8.2% in the second quarter.
International commodity prices are expected to stabilize.
New Delhi, Jan 12 (NationPress) The inflation rate in India, based on the Consumer Price Index (CPI), has been assessed at 1.33 percent for December 2025, which shows a slight increase compared to 0.71 percent in November.
Food inflation remained in the negative territory during December at -2.71 percent, as food prices decreased compared to the same month last year. This marks the seventh consecutive month of negative food inflation, thereby lightening the financial strain on households. Nevertheless, the December figure was slightly higher than the -3.91 percent recorded for November.
The rise in overall inflation and food inflation for December 2025 is primarily attributed to increased prices in personal care items, vegetables, meat, fish, eggs, spices, and pulses, as stated by an official source.
Despite these trends, the broader outlook for inflation remains positive. The Reserve Bank of India’s (RBI) monetary policy committee (MPC) recently revised its inflation forecast for the fiscal year 2025-26 down to 2 percent from the 2.6 percent estimated in October, attributed to a significant drop in food prices and the implementation of GST rate cuts.
RBI Governor Sanjay Malhotra announced a 25 basis points reduction in the repo rate to 5.25 percent from 5.5 percent, allowing monetary policy to shift focus towards stimulating growth as inflation has decreased.
Malhotra highlighted that the acceleration in economic growth to 8.2 percent in the second quarter of the current fiscal year, alongside a drop in inflation to 1.7 percent, has ushered in a rare “Goldilocks period” for the Indian economy.
He remarked, “The MPC observed that headline inflation has significantly eased and is expected to be lower than previous estimates, mainly due to exceptionally favorable food prices. Given these positive conditions, the forecasts for average headline inflation in 2025-26 and Q1:2026-27 have been revised downward.”
Malhotra also noted that core inflation (excluding food and fuel) remained relatively stable in September-October, despite ongoing price pressures from precious metals. Excluding gold, core inflation decreased to 2.6 percent in October. Overall, the downward trend in inflation has become more widespread, he added.
The RBI Governor observed that food supply conditions have improved due to increased kharif production, robust rabi sowing, sufficient reservoir levels, and favorable soil moisture. Except for some metals, international commodity prices are expected to stabilize moving forward.
Point of View
It is crucial to recognize the nuanced dynamics of inflation in India. While the CPI figures show a slight rise, the continued negative food inflation offers a respite to consumers. The RBI's proactive measures reflect a commitment to sustaining economic growth, making it essential for stakeholders to remain informed about these developments.
NationPress
12 May 2026
Frequently Asked Questions
What is the current inflation rate in India?
As of December 2025, India's inflation rate based on the CPI is 1.33%.
How has food inflation changed recently?
Food inflation has recorded a negative rate of -2.71% in December, marking the seventh consecutive month of negative inflation.
What factors contributed to the rise in inflation?
The increase in inflation is largely attributed to higher prices in personal care items, vegetables, meat, fish, eggs, spices, and pulses.
What actions has the RBI taken regarding interest rates?
The RBI has reduced the repo rate by 25 basis points to 5.25% to support economic growth.
What is the forecast for inflation in the upcoming fiscal year?
The RBI has revised its inflation forecast for 2025-26 down to 2%.
