India's retail inflation ticks up, but still super low
India's retail inflation crept up to 1.33% in December 2024—up from November's very low level, but still way below the Reserve Bank of India's 2-6% tolerance band (with a 4% target).
Food prices actually dropped further, although the decline was less steep than in November.
For all of 2024, average inflation was just 2.2%—the lowest in 12 years.
What's changing and why it matters
Big update ahead: January will see a new CPI base year (moving from 2012 to 2024), so the way inflation is measured will shift to include more non-food stuff.
With prices staying this chill, the RBI cut its key interest rate to 5.25% and lowered its forecast for next year's inflation too.
If you're curious about how money moves and what shapes your wallet, this is worth keeping an eye on—it could mean cheaper loans or changes in what things cost day-to-day.