India's retail inflation ticks up, but still way below last year
India's retail inflation is set to rise to 1.66% in December 2025, after hitting a multi-year low of just 0.25% in October.
The main reason? Food prices—especially tomatoes—have climbed due to winter demand and earlier rains.
Even with this bump, inflation is much lower than the 5.2% seen last December.
Food prices still down, but gold and fuel nudge core inflation up
Food inflation stayed negative at -3.91% in November 2025, meaning food overall got a bit cheaper compared to last year. For December, food inflation is projected to be -1.19%.
Core inflation—which leaves out food and fuel—is projected to rise to 4.68% in December, mostly because gold prices jumped.
In November, fuel costs edged up by 2.32%.
RBI cuts rates, but keeps an eye on future risks
The Reserve Bank of India recently lowered its key interest rate to 5.25% and expects average inflation for the next financial year at just 2%.
Still, they've warned that unexpected weather could push food prices higher again later in the year if supplies get disrupted.