Retail Inflation Ticks Up on Food Price Pressure

India’s CPI inflation rose to 1.33% in December 2025 from 0.71% in November, largely driven by a rebound in food and vegetable prices. Despite remaining well below the RBI’s medium term target, the rise has renewed focus on price volatility. The Reserve Bank recently cut the repo rate to 5.25% following strong GDP growth of 8.2% in Q2, balancing growth support with inflation risks.