Inflation based on the Consumer Price Index rose in December

12-Jan-2026 06:08 PM

New Delhi:  According to estimates by economists ahead of the release of official data, the inflation rate based on the Consumer Price Index (CPI) rose to 1.7 percent in December, the highest level in the last four months.

The increase was attributed to an unfavorable base effect and a rise in the prices of some food products and gold and silver. This is the first time in the last three months that retail inflation has risen above 1 percent.

The Reserve Bank of India (RBI) has set a medium-term average target of 4 percent for retail inflation, and this is the 11th consecutive month that the actual inflation rate has remained below this target.

The RBI has set a medium-term inflation target of 2 to 6 percent, while the December 2025 inflation rate is expected to be even below the lower end of this range (2 percent).

According to available data, the CPI-based inflation rate was 0.71 percent in November 2025 and 5.22 percent in December 2024.

Economists have estimated the December 2025 inflation rate to be between 1 and 2.3 percent, which is not very high but still higher than the previous three to four months.

The official inflation data for December 2025 is expected to be released by the Ministry of Statistics and Programme Implementation soon. During December 2025, the prices of some food products, including vegetables, increased.

According to the Department of Consumer Affairs, the price of tomatoes increased by 13 percent and onions by 4 percent during this period, but the price of potatoes decreased by 4 percent.

While there was some increase in food inflation in December, it was not unexpected. With the sowing of Rabi crops and the arrival of Kharif crops, the prices of most food products remained either stable or slightly lower.