India's retail inflation, as measured by the Consumer Price Index (CPI), saw an increase to 1.33% in December 2025, reaching a three-month high. This marks an uptick from the 0.71% recorded in November 2025. The previous peak was 1.44% in September 2025. Despite this rise, the inflation rate remains comfortably below the Reserve Bank of India's (RBI) medium-term target of 4%, and notably, it has stayed below the lower tolerance band of 2% for the fourth consecutive month. This provides the RBI with room to continue supporting economic growth. Food inflation, based on the Consumer Food Price Index (CFPI), continued its streak in negative territory for the seventh consecutive month, registering at -2.71% in December 2025. While still negative, this figure is a slight increase from -3.91% observed in November 2025, indicating some easing of deflationary pressures in the food segment. The rise in overall headline and food inflation during December was primarily attributed to higher prices of various kitchen essentials, including personal care and effects, vegetables, meat and fish, eggs, spices, and pulses and their products. Official data from the Ministry of Statistics and Programme Implementation (MoSPI) confirmed these figures, which were released on Monday, January 12, 2026. This data is crucial for economic analysis and policy formulation in India.