After staying at historically low levels for months, consumer prices have begun to edge higher once again.
The latest India retail inflation figure for December 2025 stood at 1.33%, marking the highest level in three months, according to data released by the government on Monday, January 12.
The Consumer Price Index (CPI)-based inflation had eased to 0.71% in November and a record low of 0.25% in October, but the upward trend in December signals a reversal driven largely by food items.
India Retail Inflation: Key Factors Behind the Rise
Food inflation, which carries nearly 50% weight in the CPI basket, saw a notable shift. Month-on-month food prices moved from a deflation of 3.91% to 2.71%, reflecting increases in pulses, vegetables, meat, fish, eggs, and electricity rates.
These categories pushed the overall index higher, ending a period of unusually soft prices that had prevailed in the preceding months.
Rural and Urban Inflation Trends
Rural areas recorded inflation rising from 0.10% in November to 0.76% in December. In urban centres, the rate climbed from 1.40% to 2.03%, showing a sharper increase in city consumer costs.
This divergence highlights varying pressures across regions, with urban households feeling a relatively stronger impact.
Context of Recent Lows
October’s 0.25% reading had been the lowest in the current CPI series, which uses 2012 as the base year. November continued the subdued trend at 0.71%, aided by falling food prices.
The current series, updated periodically to reflect changing consumption patterns, compares prices against the 2012 benchmark of 100. Earlier series used different base years, but regular revisions ensure more accurate tracking of everyday expenses like groceries, fuel, and utilities.
Stay updated with the latest economic indicators, monthly CPI releases, and expert breakdowns for a clear picture of price movements.
Disclaimer: This article is based on official Consumer Price Index data released by the Government of India on January 12, 2026, and related reports. Inflation figures can vary with revisions; readers should refer to the Ministry of Statistics and Programme Implementation for the most current and detailed information.