Business

India’s CPI Inflation At 1.33% In December; Food Prices Fall For Seventh Straight Month

India’s inflation rate, measured by the Consumer Price Index (CPI), stood at 1.33 per cent in December 2025, marginally higher than the 0.71 per cent recorded in November, according to the data MoSPI released on 12 January.

Food inflation continued to remain in the negative zone at (-) 2.71 per cent in December, reflecting lower food prices compared to the same month last year. This marked the seventh consecutive month of negative food inflation, providing sustained relief to household budgets.

The December reading was higher than the (-) 3.91 per cent seen in November.

Higher inflation in personal care and effects, vegetables, meat and fish, egg, spices and pulses drove the uptick in headline and food inflation in December 2025.

Despite this increase, the broader inflation outlook remains benign, supported by easing food prices and policy measures.

The Reserve Bank of India’s monetary policy committee (MPC) last month reduced its inflation forecast for the 2025-26 financial year to 2 per cent, down from 2.6 per cent projected in October. The bank attributed the revision to a sharp decline in food prices and the impact of GST rate cuts.

Repo Rate Cut to Support Growth

RBI Governor Sanjay Malhotra announced a 25 basis point cut in the repo rate to 5.25 per cent from 5.5 per cent earlier, citing the moderation in inflation and the need for monetary policy to support growth.

Malhotra said the acceleration in economic growth to 8.2 per cent in the second quarter of the current financial year, alongside a sharp fall in inflation to 1.7 per cent, had created a rare ‘Goldilocks period’ for the Indian economy.

The Governor further observed that food supply prospects have improved due to higher kharif output, healthy rabi sowing, adequate reservoir levels and favourable soil moisture conditions. He added that, barring some metals, international commodity prices are expected to moderate going forward.

Also Read: Motherson, Adani Ports Tie Up To Boost Auto Export Capacity At Dighi Port

Md Shadan Ayaz

Recent Posts

Mamata Faction Candidate Withdraws Nandigram Nomination; Extends Support To Congress

Sanchita Dey Pradhan withdrew her Nandigram nomination after meeting Suvendu Adhikari, prompting Mamata Banerjee to…

20 mins ago

Highly Anticipated Folk Track ‘Khus Raha’ Drops Via Warner Music India

 Audiences eagerly await 'Khus Raha' from Maati Season 2, launching on September 22, featuring stellar…

40 mins ago

Chandigarh Cab Restrictions Squeeze Drivers; Limit Commuter Choice Amid Monopoly Concerns

Chandigarh’s cab restrictions have reduced driver earnings and commuter choices, sparking concerns over competition and…

2 hours ago

UAE President Congratulates PM Modi On Successful BRICS Presidency

UAE President Sheikh Mohamed bin Zayed Al Nahyan congratulated PM Modi on India’s successful BRICS…

3 hours ago

Net Direct Tax Collections Rise 13% To Cross Rs 12.12 Lakh Crore

India’s net direct tax collections rose 13 per cent to Rs 12.12 lakh crore, driven…

3 hours ago

PM Modi To Hand Over Job Letters To 51,000 Youth At 20th Rozgar Mela

Prime Minister Narendra Modi will distribute over 51,000 appointment letters to new government recruits across…

3 hours ago