India's inflation is ticking up, but still way lower than last year
India's retail inflation is set to rise to 1.66% in December 2025 (up from 0.71% in November), mainly because food prices are creeping back up.
Even so, that's a lot less than the 5.2% spike we saw in December 2024.
The official numbers will be released on January 12, but early signs suggest things aren't spiraling—just moving up from a super-low base.
What's going on with prices and why should you care?
The RBI has actually lowered its full-year inflation forecast to 2%, keeping it well within their comfort zone (2-6%).
Food inflation is still negative, meaning some stuff is cheaper than last year, but tomatoes and other veggies are pricier after weird weather hit supplies.
If you're thinking about loans or savings, it's important to note that a gentle rise in inflation could generally affect EMIs and deposit returns—but nearly 80% of everyday items are seeing less than 4% price hikes right now.
So while costs are inching up, most things aren't getting wildly expensive just yet.