India's retail inflation, as measured by the Consumer Price Index (CPI), accelerated for the second consecutive month, reaching 1.33% in December 2025. This figure represents an increase from 0.71% recorded in November 2025, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, January 12, 2026. The modest rise was primarily driven by a slower decline in food prices and an uptick in costs across specific segments such as personal care and effects, vegetables, meat, fish, eggs, spices, and pulses. Despite this quickening, the headline inflation rate remained significantly below the Reserve Bank of India's (RBI) medium-term target of 4% for the eleventh consecutive month. Food inflation, a major component of the CPI basket, continued to be in deflationary territory at -2.71% year-on-year in December. However, this marked a moderation from the -3.91% decline observed in November, indicating an easing of food price pressures. Vegetable prices, in particular, saw their deflation ease, declining by 18.47% compared to a sharper 22.20% fall in the previous month. The overall low inflation environment has created space for the RBI to maintain an accommodative monetary policy, with reports indicating a recent 25 basis point cut in the repo rate to 5.25%. This trend suggests a period of price stability and potential support for economic growth, even as global economic conditions remain complex. Rural inflation climbed to 0.76% in December from 0.10% in November, while urban inflation rose to 2.03% from 1.40%. The December 2025 data marks the last release under the CPI series with base year 2012, as a revised CPI series with base year 2024 is slated for release in February 2026.