Food price trends push India inflation higher in December

India’s December inflation edged higher as food prices stabilized, while strong GDP growth supports a favorable macro environment.

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Food price trends push India inflation higher in December

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Food price trends push India inflation higher in December
India’s December inflation edged higher as food prices stabilized, while strong GDP growth supports a favorable macro environment.
India’s consumer price inflation rose to 1.33% in December 2025 from 0.71% in the previous month as food deflation eased. Despite the uptick, inflation remains well within the Reserve Bank of India’s comfort range. The RBI recently cut the repo rate to 5.25% following strong GDP growth of 8.2% in the September quarter. Economists describe the environment as a ‘Goldilocks’ phase, supporting growth while keeping inflation manageable.
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