Retail Inflation Hits Three-Month High as Prices Rise

Retail inflation rose to a three-month high of 1.33 percent in December 2025, driven by an increase in food prices. In October last year, retail inflation had touched a record low of 0.25 percent, while it stood at 0.71 percent in November. Notably, retail inflation was significantly higher at 5.22 percent in December 2024. These figures were released by the National Statistical Office (NSO) on Monday. Retail inflation, calculated based on the Consumer Price Index (CPI), continues to remain below the Reserve Bank of India’s target level of 4 percent.

Food inflation stood at minus 2.71 percent in December, marking the seventh consecutive month of negative food inflation. However, compared to October and November, food inflation increased marginally in December due to rising prices of vegetables, eggs, meat, fish, spices and pulses.

Urban inflation was recorded at 2.03 percent, while rural inflation stood at 0.76 percent. Among the states, Kerala recorded the highest inflation at 9.49 percent, followed by Karnataka (2.99%), Andhra Pradesh (2.71%), Tamil Nadu (2.67%) and Jammu & Kashmir (2.26%). Meanwhile, Assam, Bihar, Haryana, Madhya Pradesh, Odisha and Uttar Pradesh reported deflation.