India's inflation ticks up, but still under RBI's radar
India's inflation rate climbed to 1.33% in December 2025—almost double November's number—but it's still below the Reserve Bank of India's 2% lower tolerance threshold.
The main culprit? The drop in everyday kitchen essentials slowed down, so prices aren't falling as quickly as before.
Food prices: Still dropping, just not as fast
Food inflation stayed negative at -2.71%, thanks mostly to big drops in veggie and pulse prices (down over 18% and 15%).
But those price cuts aren't as steep as last month, so the relief at the grocery store is easing up a bit.
Mixed bag across categories and regions
While fuel, housing, and clothing inflation actually cooled off a little, rural areas saw inflation jump from almost zero to 0.76%.
Urban folks felt it more too, with their rate rising to 2.03%.
Month-on-month, overall inflation picked up speed as food price drops slowed down—so while things aren't out of control, wallets might feel a bit tighter for now.