India's retail inflation rises to 3-month high of 1.33%
What's the story
India's retail inflation has increased to a three-month high of 1.33% in December, up from 0.7% in November, government data released today showed. Despite the rise, the headline inflation rate has remained below the Reserve Bank of India's (RBI) lower tolerance threshold of 2% for four consecutive months. This indicates a significant reduction in price pressures since mid-2025.
Data shift
December marks transition for India's inflation data
December also marks a major change in India's inflation data. It is the last Consumer Price Index (CPI) reading based on the 2012 base year. From January onward, the CPI series will be based on a new 2024 base year with an updated consumption basket that includes more items and gives greater weightage to non-food items. This change is expected to make headline inflation less volatile and more reflective of broader demand conditions over time.