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Rising food prices push December inflation higher, pressure nominal growth
December inflation edged higher due to food prices, moderating nominal growth expectations while policy support continues to sustain India’s economic momentum.
India’s December inflation rose to 1.33%, driven mainly by higher food prices, pressuring nominal GDP growth expectations for FY26. Economists cut growth forecasts to 7–8%, citing uneven consumption. While headline inflation stayed contained, analysts warned supply disruptions and weather risks could lift food prices. Monetary policy remains accommodative, with rate cuts intended to support growth momentum as policymakers balance inflation risks with sustaining domestic demand.