• As per NSO’s latest data, India’s retail inflation, based on the Consumer Price Index (CPI), climbed to a three-month high of 1.33% in December 2025, rising from 0.71% in November 2025, while remaining below the Reserve Bank of India (RBI)’s lower tolerance threshold of 2% for the fourth consecutive month.

• What? Release of CPI data for December 2025
• Released by: NSO, MoSPI
• Retail Inflation (CPI): 1.33%
• Food Inflation (CFPI): –2.71%
• Core Inflation: 4.45%

Key Findings:
Food Inflation: The food inflation rate, based on the All India Consumer Food Price Index (CFPI), registered negative growth for the 7th consecutive month, declining by 120 basis points (bps) from -3.91%(in November 2025) to -2.71% (in December 2025).

• While, food inflation rates for rural and urban areas of the country are at -3.08% and -2.09%, respectively in December 2025.

Core Inflation: As per NSO’s data, Core inflation, excluding volatile items like food and energy, surged to a 27-month high of 4.45% in December 2025, compared to 4.23% in November 2025.
Top 5 States: Among all major states, Kerala registered the highest Year-over-Year (YoY) inflation rate i.e. at 9.49%; followed by Karnataka (2.99%); Andhra Pradesh, AP (2.71%); Tamil Nadu, TN(2.67%); and Jammu & Kashmir (J&K)(2.26%).