India's inflation edges up, but still under control
India's CPI inflation in December 2025 ticked up to 1.33%—a bit higher than November 2025's 0.71%, but still below the RBI's comfort zone of 2-6%.
Food prices: Still falling, but less sharply
Food inflation stayed negative, mostly thanks to cheaper veggies and pulses. That said, the drop isn't as steep as last month.
Meanwhile, non-food essentials saw steady prices overall—but gold got pricier, nudging core inflation (minus food and fuel) up to around 4.5%.
What's next: Rate cuts and a new CPI formula
The RBI has already cut rates by 125 basis points in 2025 and expects inflation to stay around 2% for FY27.
Heads-up: A revamped CPI index based on fresh data is launching soon (February 12, 2026), which is expected to better capture current consumption patterns and reflect economic realities.
Economic forecasts are mixed: the RBI projects inflation to rise to about 3.9-4.0% in H1 FY27, while some forecasters expect it could exceed 4% in H2 FY27.